XI. Look through the text “Interpretation of Contracts”

and list the principal ideas

XII. Write an essay about the Contract making use of the information from the texts “The Contract” and “Interpretation of Contracts”

Before you start writing put down the following:

1. types of contracts mentioned in the texts;

2. other types you know which are not mentioned here;

3. your own illustrations of various contracts;

4. new information about contracts which you would put into practice.

5. types of contracts you happened to make;

6. types of contracts you consider most important; why;

7. what you would like to add about the interpretation of contracts:

While writing an essay make use of the following connectives which will help you shape your ideas:

Addition: specifically, in other words, that is to say, to explain;

Explanation: for example, for instance, to illustrate;

Contrast: none the less; still; yet; whereas;

Cause: consequently, for;

Summing up: to sum up.

Text 2 Prices and Terms of Delivery

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 cif 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 GBP 1,200. 00 each cif Murmansk.

• We can offer the goods at the price of GBP 78.00 per metre сif Liverpool.

• The goods are offered on a for basis.

Text-study

1. Learn the following words

to quote	назначать (цену);
quotation	цена, котировка;
f ob	фоб;
сif	сиф;
с & f	каф;
for	франко железнодорожная станция;
expenses	расходы;
port; port of shipment; port of destination	порт; порт погрузки порт назначения;
to cover	покрывать, компенсировать;
to insure; insurance; insurance expenses	страховать; страхование; расходы по страхованию;
freight	фрахт;
mode; mode of transportation	способ способ перевозки;
to ship; shipment ship; shipper	отгружать; отгрузка; судно; грузоотправитель;
per head	на человека.

II. Complete the sentences, as in the text:

1. When sellers quote prices in their offers they usually...

2. The price will certainly depend оn...

3. The most popular terms of delivery in foreign business transactions are...

4. If the goods are offered on f о b terms the price . . .

5. If the goods are offered on cif terms the price...

6. If the goods are offered on с & f terms...

7. If the goods are offered on for terms...