Focus 7. Letters to make up.

1. Make up a letter from the Seller to the Buyer advising of a draft to pay for the consignment delivered. Follow the plan:

 quote the contract number;

 inform that you have drawn on the Buyer, give details;

 enumerate the documents enclosed with the draft, specify that they will be released against payment (acceptance);

 don’t forget about the complimentary close.

2. Make up a letter from the Buyer to the Seller informing about honouring the draft. Follow the plan:

 quote the number of the contract and the draft number;

 inform that you have met the draft, give details;

 don’t forget about the complimentary close.

Focus 8. Role play.

1. Hold negotiations on the method of payment. The Seller states that he doesn’t accept International Giro or Mail transfers as the sum of the contract is quite considerable. The Seller insists that payment should be effected by an LC. The Buyer wants to pay in installments by Bank Transfers.

2. Hold negotiations on the method of payment, i.e. payment by drafts. Discuss the terms of payment and domiciliation. Specify what actions will be taken in case the B/E is dishonoured.

3. Your firm, an export dealer, receives an order from a new customer who does not inform how he proposes to pay for the goods. You arrange a meeting and discuss the method of payment. Choose any variant and give details:

 LC;

 Bills of Exchange (drafts);

 Bank Transfer.

4. Your bank informs you that a 60 d/s bill drawn by you on a foreign customer has been dishonoured without any explanation. You ask your customer to explain the situation to you. Choose any variant:

 failure to meet the bill on the due date occurred through an oversight on the customer’s part and he promises to settle the problem as soon as possible;

 you failed to notify your customer of the draft, although he had warned you that he would not accept drafts without advice;

 the customer is unable to meet your bill owing to some financial problems. You are going to protest the bill and prosecute the drawee.

FOCUS 9. Act as an interpreter.

DIALOGUE 1 

DIALOGUE 2

– Какие формы расчетов Вы, как правило, используете в своих контрактах? Используете ли Вы рассрочку платежей?

– Sure we do. But payment by installments is not dominant. We prefer a combination of an advance payment with a Letter of Credit or with payment for collection.

– Поскольку это наш первый контракт, то хотелось бы знать, какой размер аванса Вы хотите установить в контракте? Мы предлагаем 20% авансом, 60% аккредитивом, а остальные 20% трехмесячными траттами с начислением 5% годовых.

– This is our first transaction, and I think there must be at least a 30% advance. As for the drafts we cannot offer you the maturity over 30 days.

– Тогда, может быть, по траттам можно увеличить общую сумму до 30% за счет уменьшения суммы аккредитива? И еще, какой аккредитив Вы используете?

– An irrevocable divisible Letter of Credit to be opened within 15 days of the date of the contract. As for the drafts, I don’t believe we can accept that much in this form.