Chapter 7 / Contracts and Their Performance

Глава 7 / Контракты и их исполнение

A Contract is a business agreement on work to be done, rates to be paid, goods to be sold or bought. It is also a document embodying such an agreement.

Contracts are concluded either between companies in one and the same country, or internationally, i.e. between organizations of different countries. Every international contract has several standard parts which are obligatory. Most frequently these necessary parts of the contract include the following:

– legal addresses of the contracting parties;

– the subject matter of the contract, i.e., what this business agreement is about. usually this also includes the total amount of money involved and the denomination of goods bought or sold under the provision of this contract (or the type of service agreed upon);

– the detailed description of goods: their price, quality and quantity, packing and marking, etc.,

– the terms of delivery (the most usual ones being F.O.B., F.O.R., C.I.F., C. & F., F.I.O.S., F.I.O., and others);

– the length of duration of the contract, i.e. over what span of time the obligations arising out of it are valid;

– the terms and procedure of payment, banking details;

– arbitration;

– claims and their settlement;

– guarantee period (if any);

– other conditions.

All contracts consist of clauses, which are numbered, and sometimes of subclauses, and even of sub-subclauses as well. In the negotiations or correspondence one can refer to the specific clause and subclause, e.g. «according to the clause 7.5. of the contract number…», or «as specified by clause 5.4.3. of the present contract ...».

Contract No. 1

Moscow

May 22, 2010

Russian Foreign Trade Association «Almazjuvelirexport», Moscow, hereinafter referred to as the Sellers, on the one part, and ABC, Inc. hereinafter referred to as Buyers, on the other part, have concluded the present Contract to the following effect:

I. Subject Matter of Contract

The Sellers have sold and the Buyers have bought c.i.f. airport Stuttgart, Germany as per Specifications Nos. 120874-77 attached to the present Contract. The above Specifications form an integral part of the present Contract. The total value of the goods under the present Contract makes 105200 US dollars. Partial shipments are not allowed.

II. Price of Goods

The price of the goods is fixed in US dollars.

III. Quality of Goods

The quality of the goods sold under the present Contract shall conform to the State Standards and Technical Conditions existing on Russia for these goods.

The Sellers guarantee the high quality of the materials used in the manufacture of the equipment.

Контракт № 1

Москва

Maй 22, 2010

Российское хозрасчетное внешнеторговое Объединение «Алмазювелирэкспорт» Москва, именуемое в дальнейшем Продавец, с одной стороны, и корпорация ABC, именуемое в дальнейшем Покупатель, с другой стороны, заключили контракт о нижеследующем.

1. Предмет контракта

Продавец продал, а Покупатель купил на условиях СИФ аэропорт Штутгарт, Германия, согласно спецификациям № 120874-77, прилагаемым к настоящему контракту. Указанные спецификации являются неотъемлемой частью настоящего контракта. Общая стоимость товаров по контракту составляет 105200 американских долларов. Частичная отгрузка товаров не разрешается.

II. Цена товара

Цена на товар установлена в американских долларах.

III. Качество товара

Качество товара, проданного по настоящему контракту, должно соответствовать государственным стандартам и техническим условиям, существующим в России на эти товары. Продавец гарантирует высокое качество используемых для изготовления оборудования материалов.

IV. Packing and Marking

The goods will be packed in wooden cases or millboard boxes and marked as follows:

1) gross weight;

2) name and address of the Receiver;

3) Sender’s name and address.

V. Delivery and Acceptance of Goods

The goods will be considered as delivered by the Sellers and accepted by the Buyers:

1) as regards the gross weight and the number of cases – in accordance with the weight and the number of cases stated in an airway bill;

2) as regards the net weight and the quality – in accordance with the Sellers’ Specification. The date of an airway bill is to be considered as the date of delivery. The goods are to be shipped to the address: ABC, Inc., Beethovenstrasse 17, 2104 Stuttgart 10, Germany.