VII. Packing and Marking

The equipment shall be shipped in export seaworthy packing in accordance with the requirements of each particular type of equipment or material.

The Seller shall be responsible for any damage or breakage of the goods that may be caused by improper or faulty packing.

The cases in which the equipment will be packed, shall be marked on three sides: on the top of the case and on two opposite sides.

The marking shall be clearly made with indelible paint English and Russian.

VIII. Insurance

The Buyer will insure at his expense all the equipment for its full value against all usual marine risks from the moment the goods are put on board at the port of loading.

IX. Arbitration

1. All disputes that may arise in connection with the present Contract will be settled as far as possible by means of negotiations between the Parties. If the Parties do not come to an agreement, the matter is to be submitted for settlement to Arbitration, with its seat in London, Great Britain

2. The Party which wishes to refer the dispute to Arbitration shall notify the other Party by a registered letter stating there the name and the address of the arbitrator as well as the subject of the dispute, date and number of the Contract.

Within 30 days of receipt of the above letter the other Party shall choose its arbitrator, and inform the first Party of it by a registered letter stating the name and address of the arbitrator chosen.

3. If the Party notified of the dispute being submitted to arbitration fails to choose its arbitrator the latter will be appointed within 30 days by the President of the Chamber of Commerce in Stockholm, Sweden.

4. Within 30 days the arbitration shall choose an Umpire. If the arbitrators fail to agree upon the choice of the Umpire, the latter will be appointed by the President of the Chamber of Commerce in London, Great Britain.

5. The award is to be issued by a majority of votes in accordance with the terms and conditions of the present Contract, and also the rules of Swedish Material Law.

X. Other Terms

Any changes, amendments or supplements to the terms and conditions of this Contract shall be valid only if set forth in a written document duly signed by authorized representatives of both Parties to the present Contract.

2. Answer the following questions:

1. How can the disputes between the Parties be settled?

2. Where is the matter submitted to if the Parties come to no agreement?

3. How shall the Party which wishes to refer the dispute to Arbitration notify the other Party about its decision?

4. What information does the registered letter contain?

5. How long does it take the other Party to choose its arbitrator?

6. What happens if the other Party fails to choose its arbitrator?

7. Who chooses the Umpire and how long does it take to choose one?

8. Who chooses the Umpire if the Parties fail to agree upon the candidate?

9. How is the award issued?

3. Give English equivalents for the following:

• Сторона, желающая передать спор в арбитраж, обязана известить другую сторону.

• Арбитр назначается президентом Торговой палаты Лондона.

• Если стороны не могут прийти к соглашению, споры и разногласия представляются на рассмотрение арбитражного суда.

• Решение принимается большинством голосов в соответствии с законом

• ... становятся недействительными, если они входят в противоречие с данным контрактом

• известить другую сторону заказным письмом с указанием имени и адреса избранного арбитра

• Дело должно быть передано для разрешения в национальную Торговую палату.

• Арбитры не смогли прийти к соглашению в выборе суперарбитра.

• Данное разногласие может быть разрешено путем переговоров

• Контракт становится действительным и входит в силу с момента его подписания.

• Мы выберем своего арбитра в течение недели после получения вашего письма.

DEVELOPING VOCABULARY

1. Study the following list of words common in legal contracts. Use your dictionary to check you understand them.

to allege amendment to be defined as to be entitled to to be in force to claim consent to default delivery

joint participation joint venture agreement to make a claim against to enter into an agreement on the part of party / parties prior solely to stipulate

duration terms of a contract obligation to furnish to undertake hereby

2. Now explain the underlined words in the sentences below and translate the sentences into Russian.

1. Lin Ltd and Wait & Co singed a contract entering into a joint venture to manufacture teapots.

2. The agreement stipulated that Lin would supply technical experts experienced in the design of teapots.

1. Under the terms of the contract Wait would not attempt to sell any teapots produced solely by them, without the prior consent of Lin.

3. To do so would represent a default on the part of Wait, and Lin would be entitled to demand an explanation.

4. In the event of such a default, Lin could make a claim against, alleging the breaking of an agreement still in force.

5. Wait claimed that an amendment had been made to the original contract, permitting them to sell a particular teapot.

6. The two parties are now engaged in a legal dispute.

7. Meanwhile, Wait has given an undertaking not to proceed with sales of the teapot.

3. Give synonyms to the following words.

competence, competency	minors
compensation (item of value)	the dissatisfied party
decision, judgement (agreement)	obligatory, compulsory
consent	infringement, violation

4. Match the words with their definitions and give Russian equivalents to the words.

acceptance, consideration, tout, void contract, remedy, capacity, award, injunction, damages, breach, specific performance, parole contract

1. An action that is wrong but not criminal and can be dealt with in a civil court of law.

2. An official decision given by a judge or a court of law.

3. An official agreement to take something that you have been offered.

4. A simple contract which is not in writing.

5. A way of dealing with the problem or making an unsatisfactory situation better.

6. Something of material value given by a party to a contract in return for some duty taken upon himself by the other party.

7. An action that violates a law, rule or agreement between people or groups.

8. The legal right necessary for an individual to enter into a binding contract.

9. An amount awarded by a court to an appellant who has suffered loss as a result of the actions of another party. Compensation for breach of contract.

10. A court order to complete / to carry out a contract.

11. An order issued to prevent someone from continuing to act in a certain way, or in a manner harmful to someone else.

12. A contract that never existed, either because it is not recognised by the law or because there is a fundamental mistake common to both parties.

5. Below are two texts concerning shipping of goods. Choose from the words in the box to complete them. The first has been done for you.

A

cargo	forwarding	shipping
documents	excise	manifest
services	destination	cleared
consignment

The 1 cargo carried by a ship is listed in the 2 .., which is a list of the bills of lading covering all the 3 … on the vessel for that voyage. It is just one of the 4 … that are involved in the shipping of goods; the insurance policy and commercial invoice are among the others. The Customs and 5 ... authorities will examine all these.

Clearing and 6 … agents are often used to handle the transportation of goods. They will arrange for the loading and unloading of the goods and arrange all the dock 7 … that are needed.

The 8 … marks, which are stenciled on the cases, provide an easy way of identifying the items in a consignment when they are unloaded. The marks are described in the manifest, which is again inspected when the goods are 9 …through Customs on reaching their 10 ... .

В This is a part of a telephone conversation between a manufacturer, Mr. Jones, and a clearing and forwarding agent, Mr. Brown.

documentation	ex works	customs
declaration	present	transport
license	stenciled	bill of lading
pro forma

Jones: So you feel that the 1 documentation isn't complete yet?

Brown: No, I'm afraid not. I'm not at all sure what 2… has been arranged to get the goods to Southampton.

Jones: I'll ask our shipper - we're using Carson and Napier this time - and I’11 get them to let you know.

Brown: Please make sure that we get a list of the marks 3… on the container.

Jones: Yes, I'll do that. And we have the export 4…, which we'll send on to you. We've made the 5…at the consulate, so we're getting the consular invoices which will confirm the 6… cost of consignment. Will you send it through to the importing 7… authorities, or shall we?

Brown: We' 11 do that for you. Have you sent a copy, with the other documents, to your bank so that they can 8… them all through the Bank of South America?

Jones: Not yet, because there's been a delay with the 9…. For some reason they've put the wrong number of packages on it, so we're just waiting for that to be cleared up. We'll get it off as soon as we can.

Brown: Good. And there should be no trouble with the terms since they’ve already seen a 10… invoice.

Jones: No, there was no problem at all.

6. Choose the best alternative to complete each sentence.

1. Insurance companies can be considered as professional……takers.

a. life b. risk c. chance d. misfortune

2. Some of the language in insurance….is incomprehensible to most ordinary people.

a. premiums b. policies c. rates d. invoices

3. The company will .the policy-holder against loss of or damage to the insured vehicle.

a. identity b. respect c. indemnify d. engage

4. Insurance companies like you to…. your claim as soon as possible.

a. process b. submit c. assure d. proceed

5. Go to an insurance…..and see if you can get a better deal.

a. breaker b. broker c. speculator d. merchant

6. In these inflationary times it is important to keep the value of your policy closely to the value of your property.

a. adapted b. linked c. indicated d. dependent

7. His insurance company had told him not to admit….. , even though it was clearly his fualt.

a. legality b. likelihood c. liability d. crime

8. My insurance company offers a wide….. of cover.

a. range b. branch c. rank d. standard

9. My endowment policy will when I'm sixty-five.

a. ripen b. mature c. flourish d. break

10 insurance originated in the fifteenth century.

a. Boat b. Sea c. Navy d. Marine

11. The form you fill in is the basis of your contract with the insurance company.

a. proposition b. application c. enrolment d. proposal

12….The insurance will be….. if you omit any relevant information.

a. void b. valid c. invaluable d. priceless

13. You're allowed 30 days' for the payment of the renewal premium.

a. grace b. favour c. way d. permission

14. Make sure all this equipment is insured….accidental damage.

a. over b. against c. with d. from

DISCOVERING LANGUAGE

1. Fill in the articles where necessary.

1. ... protocol was signed on this basis.

2. The cost of the documentation is included in the total amount stated in … Protocol No 2.

3. The manufacturers propose to make some modifications to the equipment as per ... enclosed Protocol.

4. These expenses are reflected in ... above protocol.

5. The plant was operated by ... very skilled workers.

6. Can I speak to ... workers who assembled the machine?

7. ... engineers who worked out this design come from New York.

8. Only ... experienced engineers could make these modifications.

9. They detected ... minor defects in the instrument.

10. ... defects caused a break-down of the line.

11. They undertook to correct ... defects right away.

12. They have to buy ... raw materials from Mexico.

13. ... raw materials delivered under the previous Contract proved to be substandard.

2. Complete the sentences with the appropriate prepositions.

1. According … the contract payment is to be made … a Letter of Credit open for the full value … the goods.

2. The Sellers advised us that the goods were ready …shipment.

3. The Buyers will open … fax a Letter … credit … favour … the Sellers … presentation … the following documents.

4. The Buyer has the right to extend the period … validity … the Letter of Credit.

5. The payment … the goods is to be made … US dollars … he full value … the goods … presentation … the Bank … Foreign Economic Affairs… the Republic of Belarus… the shipping documents.

6. … the event … devaluation … the US dollar both parties have the right to renegotiate the price … the goods.

7. The equipment was found defective ... design.

8. The goods were insured ... marine and war risks.

9. The goods do not conform ... the specification of the Contract.

10. All the goods were shipped ... full conformity ... the delivery schedule.

11. We do not yet know when the damage ... the instruments occurred.

12. We cannot give consent ... the immediate installation о the equipment.

13. These seemingly minor alterations may entail ... radical changes in the design.

14. ... our opinion the damage ... the machine occurred … transit.

15. We assure you that the unit will stand very high temperatures.

16. The sum of the expenses involved is equal ... $ 2,500.

17. They didn't fulfil the contractual obligations ... respect … the delivery dates.

18. The alterations ... the design were introduced ... mutual consent.

2. Supply the correct forms of the verbs.

1. We shall speed up delivery if the supply of the chemicals (to undertake) by the Buyers.

2. He said if the Buyers (to waive) inspection the tests (to carry out) in the inspector's absence in two weeks' time.

3. We are sure that if the inspection (to waive) we (to receive) the goods long ago.

4. They knew that if the inspector (to release) the machines when he was at the plant they (can) ship the goods ahead of time.

5. If the tests (to complete) they (to notify) us of the results.

6. They assured us if any defect (to detect) during the coming test a detailed investigation (to undertake).

7. We now (to pack) such goods into containers more and more often.

8. I think the consignment (to pack) by now.

9. They now (to pack) Unit M-3 in the assembly shop.

10. They (to correct) the defects now and tomorrow another test will be made.

11. Now we always (to install) such equipment with the help of our own personnel.

12. As far as we know they (to carry out) loading now.

13. The plant (to reach) the desired capacity by now.

14. The vessel (to place under loading) by now.

4. Translate into English:

1. Компания Ай Би Эм, именуемая в дальнейшем «Продавец», и компания Джи Эл Си Электроникc, именуемая в дальнейшем «Покупатель», заключили настоящий договор о нижеследующем.

2. А почему бы не отправить эти автомобили по железной дороге?

3. Цены по позициям указаны в приложениях 3 и 4.

4. Мы послали вам оборудование в полном соответствии с техническими характеристиками.

5. Цены твердые и изменению не подлежат.

6. Общая стоимость оборудования и запасных частей составляет 60 тысяч долларов США.

7. Цены понимаются «Свободно вдоль борта судна».

8. Доставка без оплаты пошлины (...с указанием места назначения)

9. Стоимость и фрахт (... с указанием порта назначения).

10. Франко-транспорт (... с указанием порта назначения)

11. Продавец продал, а Покупатель купил машины, оборудование, материалы и услуги («Оборудование») перечисленные в Приложении 1, которое является неотъемлемой частью настоящего Контракта.

12. «С завода в указанном месте» - базисное условие поставки, действующее для всех видов транспорта.

13. При заключении договора на условиях ФОБ с американскими партнерами следует оговаривать в контрактах, какие именно условия ФОБ предусмотрены партнерами.

14. Продавец обязуется поставить, а Покупатель принять и оплатить следующие автомобили иностранного производства (марка, год выпуска, пробег).

15. Продавцу, предоставлено право, поставить товар на 3 (три) % больше или меньше количества, указанного в п. 1.1.

16. Цены установлены в рублях на условиях СИФ и включают в себя стоимость упаковки и маркировки.