XI. Look through the text “Interpretation of Contracts”

and list the principal ideas.

XII. Write an essay about the Contract making use of the information in the texts “The Contract” and “Interpretation of Contracts”.

Before you start writing put down the following:

1. types of contracts mentioned in the texts;

2. other types you know which are not mentioned here;

3. your own illustrations of various contracts;

4. new information about contracts which you would put into practice.

5. Types of contracts you happened to make;

6. Types of contracts you consider most important; why;

7. What you would like to add about the interpretation of contracts;

While writing an essay make use of the following connectives which will help you shape your ideas:

Addition: specifically, in other words, that is to say, to explain;

Explanation: for example, for instance, to illustrate;

Contrast: none the less; still; yet; whereas;

Cause: consequently, for;

Summing up: to sum up.

Unit 4.3 Prices and Terms of Delivery

When sellers quote prices in their offers they usually state on what terms, at this price, they will deliver the goods. The price will certainly depend on the terms of delivery. The most popular terms of delivery in foreign business transactions are:

• fob (free on board)

• cif (cost, insurance and freight)

• с & f (cost and freight)

• for (free on rail)

If the goods are offered on fob terms the price will practically include the cost of the goods and transportation expenses to the port of shipment.

If the goods are offered on cif terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination. If the goods are offered on cif terms the price will cover the cost of the goods and freight to the port of destination. If the goods are offered on for terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case of fob terms the goods are shipped on board ships. In case of for terms the goods are transported by railway. Here are a few examples of how terms of delivery can be mentioned in offers:

• The price is USD 2,000.0 0per ton fob New York.

• The quoted price is GBP 1,200. 00 each cif Murmansk.

• We can offer the goods at the price of GBP 78.00 per metre сif Liverpool.

• The goods are offered on a for basis.

Text-study

1. Learn the words

to quote	назначать (цену)
quotation	цена, котировка
f ob	фоб
сif	сиф
с & f	каф
for	франко железнодорожная станция
expenses	расходы
port	порт
port of shipment	порт погрузки
port of destination	порт назначения
to cover	покрывать, компенсировать
to insure	страховать
insurance	страхование
insurance expenses	расходы по страхованию
freight	фрахт
mode	способ
mode of transportation	способ перевозки
to ship	отгружать
shipment	погрузка
ship	судно
shipper	грузоотправитель
per head	на человека