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Essential features of the contracts:

  • Everything should be clearly written;

  • Formal language;

  • Special set expressions;

  • Brevity.

Structure of the contracts:

  • Terms of payment, delivery, fulfilment;

  • The subject of the contract;

  • The contract should be signed and witnessed by the authorized person;

  • The addresses of the parties;

  • Obligations and rights;

  • The contract should be altered;

  • Guarantees.

to come to an agreement приходити до згоди

to sign/ conclude a contract заключати контракт

to fulfil/carry out/execute a contract виконувати

to cancel/terminate a contract розірвати контракт

to break/violate a contract порушувати контракт

reference посилання (на документ)

description of goods опис товару

hereinafter надалі

to refer to smb. as Sellers називати кого-небудь Продавцем

to the following effect з наступною метою

partial shipment часткове відвантаження

to confirm підтверджувати

recognized визнаний

letter of credit акредитив

bulk cargo насипний ватаж

tolerance допустиме відхилення

in conformity with згідно з

board бортовий

bill of lading сокр. b/1 коносамент

clean on board b/1 чистий коносамент

Chamber of Commerce and Industry торгово-промислова палата

to provide забезпечувати

commodities товари

    • After the prospective buyer receives the offer he carefully studies it. Then, very often, he has a few talks or exchanges letters with the prospective seller. After the two parties come to an agreement about terms and conditions of the transaction they sign a contract. Most contracts are made in writing. While striking a deal standard contracts are widely used. Not all the parts of standard contracts are a must. Some articles may be altered and supplemented. Some items are a part and parcel of any contract. They are legal titles of the contracting parties, subject of the contract, quality, delivering and payment terms. The part called "Subject of the contract" indicates the product for sale or purchase. It also names the unit of measure for specific commodities. The contracts for bulk cargo set the permitted quantity tolerance. The quality of the product must be in conformity with its specification. The quality of raw materials or food staffs is determined by standard, by sample or by description. The price stated in the contract may be firm, fixed or sliding. Firm prices are not the subject to change in the cause of fulfilment of the contract. Fixed prices are those governing in the market for a given period. Sliding prices are quoted for some products, which require a longer period of delivery.

1. Prices and terms of delivery

to quote призначати (ціну)

quotation ціна, котирування

f о г франко залізнична станція

freight фрахт

similar подібний

When sellers quote prices in their offers they usually state on what terms, at this price, they will deliver the goods. The price will certainly depend on the terms of delivery. The most popular terms of delivery in foreign business transactions are: fob (free on board) cif (cost, insurance and freight) с & f (cost and freight) for (free on rail)

If the goods are offered on fob terms the price will practically include the cost of the goods and transportation expenses to the port of shipment.

If the goods are offered on cif terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination. If the goods are offered on с & f terms the price will cover the cost of the goods and freight to the port of destination. If the goods are offered on for terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case of fob terms the goods are shipped on board ships. In case of for terms the goods are transported by railway. Here are a few examples of how terms of delivery can be mentioned in offers:

The price is USD 2,000.00 per ton fob New York.

The quoted price is GUP 1,200.00 each cif Murmansk.

We can offer the goods at the price of GBP 78.00 per metre с & f Liverpool.

The goods are offered on a for basis.

Contract No 32-1 Moscow September 4th, 1994

Foreign trade company Chemico, Moscow, hereinafter referred to as the Sellers, on the one part, and Messrs. Petro Co., Liverpool, England, hereinafter referred to as the Buyers, on the other part, have concluded the present Contract to the following effect:

The Sellers have sold and the Buyers have bought on с i f terms 10 000 kgs. of Chemicals ST to be delivered in the fourth quarter of 1994. Partial shipments are allowed. The quality of the Chemicals is to be confirmed by certificate issued by a competent independent and recognized laboratory. The Chemicals are to be packed in plastic bags.

The price is 175 English pounds sterling per kilo с i f Liverpool. The total value of the Contract is GBP 1750,000 (one million seven hundred and fifty thousand English pounds sterling).

The date of the bill of lading issued in the name of the Buyers is to be considered the date of delivery. Payment for the Chemicals delivered under the present Contract is to be made by a letter of credit on the presentation of the following documents:

1. Sellers' Commercial Invoice

2. Full set of clean on board Bills of Lading

3. Quality Certificate issued by the laboratory

4. Weight Certificate issued by the recognized company

5. Certificate of Origin issued by the Chamber of Com­merce and Industry

6. Insurance Policy issued by the State Insurance company.

Payment is to be made through the National Bank, Liverpool.

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