Card 15

(FORM OF CONTRACT)

Other conditions

1. Neither party is entitled to transfer its rights and obligations under the present contract to a third party without the other parties’ previous written consent.

Besides, the Buyers are not entitled to resell or in any other way alienate the goods bought under this contract to any third country without Sellers’ previous written consent.

2. After the signing of the present contract all previous negotiations and correspondence between the parties in connection with it shall be considered null and void.

3. All amendments and additions to the present contract are valid only if they are made on writing and signed by both parties.

4. All taxes, customs and other dues connected with the conclusion and fulfillment of the present contract, levied within Russia, except those connected with the Letter of Credit, to be paid by Sellers, and those levied outside Russia to be paid by the Buyers.

5. Russia is regarded as the place of conclusion and fulfillment of the contract.

Assignment:

After negotiations and signing the Contract you suggested by phone to your partners that they should increase the quantity of the cargo. What is necessary to remember in this situation?

Card 16

(FORM OF CONTRACT)

Guarantee

The Sellers guarantee that:

1. the delivered equipment corresponds to the highest technical level and the highest standards existing in the Sellers’ country for the equipment in question at the moment of the fulfillment of the contract;

2. proper material and first-rate workmanship have been used in the manufacture of the goods;

3. the capacity of the delivered equipment and the quality of its operation are in all respects in conformity with the Technical Conditions of the contract;

4. the delivered equipment is complete in accordance with the conditions of the contract which provides for its normal and uninterrupted operation;

5. the technical documents and drawings are complete, accurate and sufficient for the erection and operation of the equipment.

The guarantee period is … months from the date of putting the equipment into operation, but not more than … months from the date of shipment of the last lot of equipment. The date of the Report issued after the test of the equipment at the Buyers’ factory is considered to be the date of putting the equipment into operation.

Should the equipment prove to be defective during the period of guarantee, or should it not correspond to the conditions of the contract, or not reach the ordered capacity, the Sellers undertake at the Buyers’ option either to remedy the defects or to replace the defective equipment by new equipment to be delivered without any delay c.i.f. … . All the expenses incurred in this connection are to be borne by the Sellers.

Assignment:

What actions will you take in case if you find that the equipment delivered under the Contract does not meet Technical Conditions specified in the Contract?