Language input

Ex. 2. The words below are often used in connection with contracts. Learn the new words and word combinations. Consult the dictionary if you don’t know the meaning.

abide by	condition
agreement	litigation
arbitration	out of court
binding	party
breach of contract	provide for
cause	section
comply with	term
compromise	terminate

Ex. 3. Fill in the gaps with the phrases above and speak on what you’ve learnt about contracts.

1. A contract is an … drawn up between two … . It is divided into …, and … .

2. The contract … … any problems between the two parties. The conditions of the contract are … on both parties. If one party does not … the clauses, this is called a … of contract.

3. In the case of a dispute, many contracts provide for …, but in some cases the dispute results in … . Most parties reach a … without going to court, and the dispute is settled … … … .

4. Some contracts are for a fixed period, or …; also, there are ways in which the parties can end, or …, the contract.

Ex. 4. Read the five rules people should know before they sign a contract. Comment on each of them.

1. Be aware that a contract is a legal document, bound by legal provisions and stipulations.

2. Make sure that you are dealing with trustworthy and reliable companies.

3. Know the fine print.

4. Make sure that all of the details about the contract are fully stated.

5. Make certain that there are no blank spaces in the contract.

Ex. 5. Practice the dialogue and answer the questions below.

Karen Sheds is in Paris, where she has just been watching the showing of Nicole Vernay’s collection.

Karen: Nicole, the dresses are wonderful, my customers on the West Coast are going to love them.

Nicole: Thank you. There were one or two tricky moments, but I think it all worked out in the end.

Karen: One thing in the show did bother me, though.

Nicole: Really? What was that?

Karen: All those so-called fashion correspondents with their sketch books, sketching everything that came through the door. I don’t see them here at the reception.

Nicole: Oh, they’ve gone off to file their stories for tomorrow’s newspapers.

Karen: Some of them may be, but a lot of them are busy faxing those sketches back home to the sweatshops. By tomorrow they’ll be turning out Nicole Vernay exclusives ready to ship – and they’ll have you all stitched up.

Nicole: Well, I’ve signed a deal with very respectable firm in South Korea. They already have my designs, so I hope that the pirates won’t be able to compete.

Karen: Great idea! Does that mean I have to order from Korea as well?

Nicole: Yes, I’m sorry, Karen – Skopje’s will have to place its orders with Fashionpark just like everyone else. Even I have to get my stock from them – for my own little boutiques here in Paris.

1. What is Karen worried about?

2. Why is Nicole not worried?