1.13 Acceptance of Offers

1.13.1 Acceptance of offers by the Purchaser may be sent by Cable, Fax or Letter of Intent within the validity date of the offer and such a Cable, Fax or Letter of Intent would then be followed by a formal Purchase Order/Contract. The tenderer whose offer is accepted and who is hereinafter referred to as Contractor will proceed with the manu­facture on the basis of such advance acceptance of offers without waiting for a formal purchase order/contract.

1.14 Unsuccessful tenderers will not be informed of the result of their ten-

ders.

1.15 Training

1.15.1 The Contractor shall, in special cases, if required by the Depart­ment of ..., provide facilities for the practical training of the Purchaser's engineers and technical personnel from .... Such train­ing would normally be required only in case of special plant/ma­chinery/equipment/instrument and particularly manufactured equipment. In such an event, the Purchaser shall bear travelling expenses of the trainees and the Contractor will be required only to bear the cost of the training proper. Wherever the Contractor him­self would recommend such training, he should furnish the cost of such training and indicate clearly the number of trainees and the duration of the training that he would recommend.

1.16 Instruction Manual

1.16.1 In respect of equipment/instrument/apparatus, where instruc­tion/operation Manual is normally necessary to enable the user to put the equipment/instrument/apparatus to proper use, the Con­tractor shall furnish such an instruction/operation Manual along with the equipment/instrument/ apparatus. The Contractor shall clearly specify in the offer about his readiness to supply instruc­tion/operation Manual. Cost, if any, for supply of such an instruc­tion/operation Manual should be clearly stated.

substitution n замена accessories n принадлежности, ap- essential а необходимый, сущест- матура

венный letter of intent письмо-обязательство

deviations n отклонения manual n руководство, справочник, incorporate v включать, объединять указатель

UNIT 6

LICENCE AND FRANCHISE AGREEMENTS

A.

TEXT

In the age of integration and trade globalisation new unconventional forms of cooperation have come into being in recent times' to promote busi­ness universally.²

Nowadays hardly any industrial country has sufficient human, material, logistic³ resources, research and development to encourage a full-scale pro­duction.

Therefore, private companies, public agencies tend to buy patents, li­cences and know-how, associated licences, to be able to use new processes and techniques. Some of them prefer doing it through engineering com­panies.

Recently franchise agreements⁴ have also become popular. Under these agreements a monopoly producer, the franchisor,⁵ sells a special right to another producer or a trader, the franchisee,⁶ to manufacture or sell the prod­uct of the franchisor in a certain area, town or a country. The franchisee in this case uses the trademark⁷ and the brand name⁸ of the franchisor.

Here is an example of correspondence and business talks of licence trade.

October 5, 20... Dear Sirs,

It is our intention in the near future to establish a modern, reliable and safe manufacture of Surface Pump Units for oil-well. We are therefore inter­ested in contacting a number of Licensors with a view to choosing lines suitable for us.

Through your representative in this country ⁹ we learn that Firm ... has developed a production process to manufacture the above equipment, accu­mulated sufficient knowledge and experience in the field and is willing to transfer it to a third party at a reasonable cost.

Indian Pumps, Ltd., a state enterprise, intends to build up a market for Surface Pump Units in the country with a view to exporting them in the future.

193

To this end we would like to obtain from the Licensor design and techno­logical documentation, know-how and consultations on our personnel train­ing, both in this country and Russia.

Machine building enterprises for the production of Surface Pump Units and raw materials are fully available in the country. We also have a compe­tent engineering firm which can give consultations if necessary.

In view of the above we would like to receive an offer from you for obtain­ing a licence, know-how and related services in the volume required for the manufacture of Surface Pump Units.

We look forward to hearing from you.

Yours faithfully,

October 20, 20... Dears Sirs,

We thank you for your letter enquiring about our manufacture of Sur­face Pump Units and requesting terms for a licence agreement. It arrived at a very opportune moment since we have been considering extensions of our export field for some time.

We are ready to send you an offer for the sale of a licence, but we would appreciate very much details with regard to the type of licence you would prefer, the range of our obligations, your idea of the project capacity, mode of payment, duration of the agreement and a Licensor's fee.

As soon as we are in possession of the details, we shall forward to you a Draft Licence Agreement.

Your own proposals may be included in it but our understanding is that a non-exclusive licence will suit your purpose best of all.

We are giving your enquiry priority,¹⁰ but we would appreciate a prompt reply so that we could count you out if you are not interested."

Yours faithfully,

B.