Commercial Documentation in English. Учебное пособие

UNIT 12.

The Wording of the Contract

1. Read and translate the text:

I. Subject of the Contract

The Seller undertakes to sell and the Buyer to buy on the basis of delivery FOB Stockholm a lot of complete equipment for car repairing.

II. Price and Total Value of the Contract

The total value of the contract includs the cost of the complete equipment for car repairing as well as technical documentation, knowledge and experience (know–how), engineering, after–guarantee spares and services is $ 120.000.

III. Terms of Payment

The total amount of $ 120.000 stated in Clause II shall be paid by the Alpha Bank, Moscow, in accordance with the following terms:

15% advance payment of the total Contract value shall be made within 30 days of the effective date of the Contract May, 19, 2009.

75% of the total Contract value shall be paid in accordance with the Credit Agreement between the Alpha Bank, Moscow and the Gottes Bank, Sweden.

5% of the total Contract value shall be paid within 30 days of the date of receipt by the Alpha Bank, Moscow of the following documents: invoices, Sellers’ Certificate of Weight, Bill of Lading.

The guarantee amount of 5% shall be raid within 30 days of the receipt by the Bank of the Acceptance Protocol confirming the acceptance of the equipment for commercial operation.

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IV. Time of delivery

The delivery of the equipment under the present Contract shall begin in 2 months and shall be completed not later than 3 months from the date of signing the Preliminary Project Acceptance protocol.

V. Inspection and Test

1.Inspection and/or test of the equipment shall be made out after the equipment installation at the Seller’s place at the expense of the Seller in the presence of the Buyer’s inspectors.

2.The Seller is to notify the Buyer about the readiness of the equipment for the inspection and/or test not later than 10 days before the proposed time of the inspection and /or test.

3.The Buyer’s inspector shall issue in due time to the Seller a Release Certificate for Shipment on the basis of the Test Certificate.

4.If the Buyer’s inspector cannot be present on the appointed date, the Seller shall have the right to carry out the test without the Buyer’s inspector. The Seller shall issue a Test Certificate, which is to be sent to the Buyer’s who will issue a Release Certificate for shipment without delay.

5.Final test and acceptance of the equipment for putting it into operation are to be made in Russia.

The Invoice

In the context of international trade, the invoice provides information about goods exchanged between the exporter and the importer. It is prepared by the exporter and the importer and includes a description of the goods, their price and the quantity supplied. It can act as proof of purchase, informing the buyer that the goods have been sent. The invoice also informs the customer that the service requested can be available after payment. The example of such invoice is given below.

Network Solution A VeriSign Company PO Box 1656 Herdon VA 20172–1656

Web Address Registration. Send Payment To: Network Solution, Inc. PO Box 17305

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UNIT 12. The Wording of the Contract

Baltimore, MD 21297–0525 Subject: Web Address Registration. To The Account Of:

RUSTRADE st. Grekov 10

Moscow 129000 Russian Federation

Table №5.

Invoice

For billing inquiries, write us http:/www.networksolution.com/help/ contractus.html. or call 1–600–779–1710 from the US and Canada. Outside of these areas, call 1–703–742–4777 Monday through Friday from 7:00 a.m. to 9:00 p.m. Eastern Time. Registering a Web address through Network Solution, Inc. will get your business automatically listed in the dot com directory TM the quick way to find a business on the Internet. Visit the dot com directory at www. dotdirectory.com. Retain this portion for your records.

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2. Answer the questions:

1.What service does the firm offer?

2.What will be the WEB–name of the customer?

3.What is the charge?

4.What are the terms of payment?

5.What are the terms of payment if the customer isn’t the resident of the US?

6.What are the bonuses of using offered services?

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UNIT 12. The Wording of the Contract

Table № 6.

Consular Invoice

Seal of organization by which the Certificate is issued

3. Translate the sentences into English using words from the text:

1. Гарантийная сумма должна быть выплачена в тече- ние 30 дней после получения банком протокола принятия товара.

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2.Продавец должен уведомить покупателя о готовности оборудования к испытаниям не позднее чем за 10 дней до на- значенного срока.

3.Счет–фактура включает наименование, описание, цену

икачество товара.

4.Испытания оборудования должны быть проведены по- сле установки оборудования за счет продавца в присутствии ин- спекторов покупателей.

4. Choose Russian equivalents to the following English expressions:

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UNIT 13.

Commercial Papers

What is Commercial Paper?

1. Read translate it the text:

Commercial paper is an unconditional written order or promise to pay money. The most common form of commercial paper is the personal cheque (Am. check). It was developed hundreds of years ago to serve as a safe substitute for money.

Instead of carrying their gold and silver with them, merchants left their money at the bankers. Then, when merchants wanted to pay a seller for goods they were buying, they wrote an order addressed to their bank. The order was directed the bank to deliver a specified amount to the person or the place of the seller’s choice. The bank compared the merchant’s signature (and perhaps a seal) on the order with the signature left at the bank. The bank would comply with such written orders because, once the merchant had made a deposit, the bank was legally indebted to the depositor for that amount. Consequently, if the merchant demanded return of the deposit, the bank had to give it back.

The same is still true today. Banks still are debtors of their depositors. Also, cheques are still known as demand instruments because they allow depositors to get their money out of banks or have it paid in accordance with the depositor’s order.

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What are the types of commercial papers?

Today commercial papers can be grouped into two broad categories. The first is composed of unconditional orders to pay money. In this category are the draft and the cheque. A cheque is a special kind of draft. The second category is composed of unconditional promises to pay money. In this category are the promissory note and the certificate of deposit (COD).

The word unconditional means that the legal effectiveness of the order or promise is not dependent upon any other event.

IOU is not a commercial paper.

Here are the four main types of commercial paper:

Drafts

A draft is an unconditional written order by which one party directs a second party to pay to the order of a third party or to the bearer a certain sum of money on demand or at a definite time. A draft is also known as a bill of exchange.

$ 510.00 Nashville, Tennessee January 10. 2004

Thirty days after date ______________________________

Pay to Order of ___________Morrison G. Chase ________

Five hundred and ten _______________________ dollars Value received; Charge to Account of

To Margaret H. Sandford No 15

Knoxville. Tennesse Garry A. Minton

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UNIT 13. Commercial Papers

The usual purpose of a draft is to collect money owed. A draft initially involves three parties–the drawer, the drawee, and the payee. The drawer (Garry A. Minton) is the person who executes or draws the draft and orders so that payment should be made. The drawee (Margaret H. Sandford) is the person directed to pay the draft. The payee (Morrison G. Chase) is the party to whom this commercial paper is made payable.

Sanford most probably owes Minton $510 as a result of a previous transaction. Therefore Sanford is likely to honor the draft by paying Chase and in that way to pay her debt to Minton.

Drafts are sometimes described in terms of the time of payment. If the draft is payable at sight or on demand–that is, when it is presented to the drawee by the party, holding the draft. It is a sight draft. The drawee is expected to pay when the draft is presented.

If a draft is payable at a specified time, or if it is payable at the end of a specified period after sight or after the date of the draft, it is a time draft, as is illustrated in the example.

When a time draft is payable a number of days or months after sight, it must be presented to the drawee for acceptance in order to start the running of the specified time. Acceptance is the drawee’s promise to pay the draft when due. When the draft states it is payable a number of days or months «after date» the time starts running immediately from the date of the draft.

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Cheques

A cheque is a special type of draft by which a bank depositor orders the bank to pay money, usually to a third party. Cheques are usually written on special forms provided by bank for a fee. The forms provided by the bank usually are magnetically encoded to make cheque processing easier for the banking system. However, cheques may be written on blank sheets of paper, forms provided by the depositor, or other materials and still be legally effective. The drawee, though, must always be a bank as the instrument to qualify the cheque. Here is an example of a cheque:

PB Progressive Bank & Trust Co. No. 165

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