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DIALOGUE

Supplier: All right, gentlemen. Shall we start? You’ve studied our Draft, haven’t you?

Customer: Yes, we have carefully studied it and in principle we find the terms and conditions quite acceptable.

S. Good, if you agree to our proposal it won’t take us long to finalize the matter. C. We hope not, but first we’d like to have some clarifications.

S. Certainly. What’s the first point you’d like to bring up?

C. The major point is the equipment cost. The prices you quoted are too high, I’m afraid.

S. I don’t see why. While calculating the price we followed the decision we reached during the discussion. You, no doubt, remember that at first we proposed less sophisticated technology. But you preferred the latest technology. That explains the price.

C. Yes, this is true. But we didn’t expect the cost to be so high. Do you think you could explain the reasons?

S. You see, the total cost may seem a bit high, but is fully justified. The alterations we’ve made cover the resources, power cost, the amount and quality of the product. And in future when the country’s needs for product rise, it will have a beneficial effect on the home market and will open up export opportunities.

C. What you say is quite convincing. But, probably, this is no reason for raising the cost so much.

S. It is not much. There is something I’d like to point out. There’s a current annual rise in world prices for this particular type of equipment and materials. And we can hardly ignore it.

C. Well, I think we’ll have to look into the matter again. Our Consultant Company has presented to us their competitors materials. They are the latest.

S. Did you compare the technological characteristics?

C. We did. We’ll bring them next time. But now I think we need a couple of days to think over what you’ve just said. Probably there won’t be any need to revise the price.

S. Very good. We are ready to resume the discussion at your convenience.

EXERCISES

1. Find English equivalents for the following:

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2. Fill in the blanks with prepositions where necessary. Translate the sentences.

1.The total value … the contract amounts … US $1.200.000.

2.The Supplier, 3 months after signing … the contract shall deliver … the Customer electric equipment … the amount … US $400.000.

3.Your prices are … the level … world prices.

4.Your prices exceed world prices … 5%.

5.Now we can start our talks … prices.

6.The goods shall be delivered … 24 months … the date … signing … the contract.

7.We agree … the terms … your draft contract.

8.We hope that the present negotiations will be successfully completed … the near future … the signing … the contract … the construction.

9.We agree with the alterations and amendments … the contract.

10.The prices … the Contract are fixed … US dollars and are understood … CIF.

11.The prices … item are specified … Appendix № 3.

3. Translate into English.

CONTRACT №2

2. Цена и общая стоимость контракта

2.1.Общая стоимость контракта составляет 500 000 (пятьсот тысяч) долларов США.

Цена на товары, поставляемые по настоящему контракту, понимается как «перевозка оплачена до …», Аэропорт Москвы. Цена включает упаковку, пригодную для доставки товара и маркировку.

2.2. Цены твёрдые и не изменяются в течение всего периода выполнения контракта.

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CONTRACT №3

2. Цена и общая стоимость контракта

2.1 Общая сумма настоящего контракта будет включать сумму заказов на закупку, представленных Покупателем и не превышающих общую стоимость контракта 50.000 (пятьдесят тысяч) долларов США.

2.2.Цены поставок являются твёрдыми. В случае изменения наименования Продукта Продавец обязуется отгрузить Продукт без изменения цены.

2.3.Цена принимается на условиях СИФ (Инкотермс 2000).

DIALOGUE

Customer: Mr. …, you promised to reconsider the total contract price taking into account our request to increase the share of locally produced equipment in the volume of deliveries to the project.

Supplier: Да, мы приняли во внимание вашу просьбу. Наша новая цена …

C.: Oh, it seems too high to us.

S.: А что предлагаете вы?

C.: Half the sum.

S.: Извините, г-н …, но вы не принимаете во внимание последние международные котировки. Цены на химическое оборудование выросли в последнее время. Мы можем подтвердить наши цены конкретными материалами, а вы?

C.: So do we. Here is a contract, signed with a Hungarian firm.

S.: Мы знаем этот контракт, но он не может служить доказательством правильности ваших цен. Он был подписан 5 лет тому назад.

S.: You are right, Mr. …, but this contract can be a basis for our discussions. We may put aside if you like the discussion of the total contract price for now and take up group and item prices.

C.: В принципе, мы не возражаем, но мы не успели подготовить полную разбивку цены контракта. Мы готовы обсуждать сегодня групповые цены.

S.: All right. May we have your calculations of group prices to compare them with ours, please?

C.: Пожалуйста.

S.: Well, your group prices differ from ours. We’ll have to compare them more carefully. Could we keep your materials?

C.: Да, пожалуйста.

S.: Let’s resume our talks in 3-4 days.

4.Work in pairs. Choose a subject of your future contract and discuss the prices and total value of the Contract.

5.Based on your discussion, prepare the draft clause specifying prices and total value of your future contract.

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TERMS OF PAYMENT

In this clause Parties to the contract agree upon the method of payment and period of time payments to be effected and specify the documentation required for a particular transaction.

CONTRACT №1

Read and analyze the following sample. What necessary points does it cover? What are the main methods of payment accepted in international trade? What documents are used in international transactions? What are their functions? (For more information refer to the Supplementary Materials).