II.Reading

Text 1.

Definition of a Contract

A contract may be defined as a legally binding agreement between individuals or between a state and individual. This means that the agreement generates rights and obligations.

Contracts are classified into “contracts by deed” and “simple contracts”. The contract by deed must be in writing and must be signed, witnessed, and delivered. All other contracts may be classified as simple contracts, they are made in writing, orally or by conduct. Another way of classifying contracts is according to whether they are “bilateral” or “unilateral”.

There are three basic elements in the formation of a valid contract. First, the parties must have reached agreement (offer and acceptance); secondly, they must intend to be legally bound; and thirdly, both parties must have provided valuable consideration.

Today the courts recognize a contract as a promise that the parties to the contract must perform their obligations. So the courts may force persons to pay damages. Thus, contracts help strengthen the stability and reliability of the business system.

Task 1. Answer the questions:

1. What kind of agreement is a contract?

2. What is its function?

3. How can contracts be classified?

4. What are the three basic elements in the formation of a valid contract?

5. What do contracts serve for?

Task2. Complete the dialogue. Make use of its Russian variant if necessary.

A: Вы уже ознакомились с договорным правом?– Do you already know…… ?

B:Да. Теперь я хотел бы заключить с вами контракт. –Yes, I do. And now I’d like … with you.

A: Вы уполномочены заключать контракт? – Are you entitled … ?

B:Конечно. Наша компания уполномочила меня на это. –Certainly. I’m … to it by our company.

A:тогда прочитайте содержание контракта. Вы со всем согласны? –Then read the contract, please. Do you … everything?

B:Да. Я хотел бы подписать контракт сегодня. Но сначала я хотел бы узнать у Вас, можно ли расторгнуть этот контракт в одностороннем порядке. –Yes, I do. I’d like … today. But first I’d like … whether it is possible … unilaterally.

A:Да. Кроме того, это долгосрочный контракт. Но в случае нарушения контракта нарушитель платит неустойку. –Oh, yes. Besides, it is a … . But in case … the violator has to … .

B:Что касается нашей компании, то мы будем строго придерживаться условий контракта.– As to our company, we’re going to closely adhere to … .

A: Мы тоже. – So are we.

Task 3. Match the halves:

1. to conclude / make / form / enter into	a. заключать
2. to negotiate	b.выполнять
3. to ratify	c.расторгать
4. to carry out	d.возобновить
5. to abrogate	e.аннулировать
6. to cancel	f.соблюдать
7. to break / violate / breach	g. нарушать
8. to observe	h.ратифицировать
9. to renew	i.обсуждать условия
10. to sign	j.подписывать

Text 2.

Offer, Acceptance and Consideration

The offer must express the definite intention on the part of the person or organization mating it (called “the offeror”) to enter into the contract with the person or organization.

An offer must be clear and contain the details of the contract. The offeree may choose to accept or reject the offer but once it is accepted the contract is concluded and the parties are bound by its terms. An offer may be withdrawn or revoked by the offeror at any time as long as it has not yet been accepted by the offeree. Acceptance may be defined as an unconditional assent, communicated by the offeree to the offeror.

In addition to offer and acceptance and contractual intent, consideration is an essential element in the formation of any contract.

Task 1. Ask the questions:

1. what the offer expresses

2. what the difference between “the offeror” and “ the offeree” is

3. what an offer must contain

4. when the contract is considered to be concluded

5. if an offer may be withdrawn

6. what the acceptance is

7. if the offeree must accept the terms proposed by the offeror unconditionally

8. when the acceptance will be effective

9. what you have learnt about consideration

Task 2. Form the nouns:

to offer	to communicate	to choose
to intend	to propose	to promise
to organize	to ignore	to define
to accept	to consider	to agree
to reject	to form	to oblige
to define	to sign

Task3. Form collocations as they occur in the text:

express	be defined
contain	be proposed
accept	to complete
reject	be supported
ignore