- •6.2.7. Essential Features of Contract
- •Assignments
- •Terms of Payment
- •Assignments
- •I. Memorise the following words and phrases:
- •Terms of Delivery
- •Incoterms
- •Insurance of Goods
- •Assignments
- •I. Memorise the following words and phrases:
- •Force Majeure
- •Assignments
- •I. Memorise the following words and phrases:
- •Claims and Sanctions
- •Claim Procedure
- •Ways of Settling a Claim
- •Assignments
- •I. Memorise the following words and phrases:
- •6. Packing and Marking
- •7. Terms of Payment
- •8. Sanctions and claims
- •9. Force majeure
- •Settlement of disputes and arbitration
- •11. Miscellaneous
- •Legal Addresses of the Parties
- •Assignments
- •I. Memorise the following words and phrases:
- •Sample Contract 2
- •Article 1
- •Article 2
- •Article 3
- •Article 4
- •Article 5
- •Article 6
- •Article 7
- •Article 8
- •Article 9
- •Article 10
- •Article 11
- •Article 12
- •Assignments
- •I. Memorise the following words and phrases:
- •Article 4
- •Article 5
- •Article 6
- •Article 7
- •Article 8
- •I. Memorise the following words and phrases.
6.2.7. Essential Features of Contract
According to Ukrainian law contracts must always be made in the form of duly signed documents containing the terms of an agreement between two firms or associations called counterparts (or parties).
In international trade contracts of sale, contracts for construction work (very often for the delivery, erection and commissioning of the equipment for industrial enterprises) and lease are most frequent among a variety of basic deals. Contracts of sale include turnkey contracts and large-scale contracts on a compensation basis. There may also be barter deals and сompensatory deals.
A written contract of sale is made out in the form of a document signed both by the Buуегs and the Sellers.
When there is no necessity of introducing special terms and conditions into the contract of sale, our associations use standard forms of contracts containing the following clauses (articles):
1. Naming (definition) of the Parties
2. Subject of the contract and volume of delivery
3. Prices and the total value (amount) of the contract (including terms of delivery)
4. Time (dates) of delivery
5. Terms of payment
6. Transportation (= carriage) of goods (packing and marking, shipment)
7. The Sellers' guarantees (the quality of the goods)
8. Sanctions and compensation for damage.
9.Insurance
I0. Force majeure circumstances
11. Arbitration
12. General provisions
In the case of a contract for sophisticated machinery and equipment there may be other clauses: (technical conditions, test and inspection conditions, requirements to technical documentation, supervision of erection and putting the machinery into operation (commissioning), and sending specialists for the purpose, training of the Buyers' specialists, the Sellers' obligations for technical servicing and the like. These clauses may be included in the contract itself or in the Appendices to the contract which are an integral part of it. Here are some of the items which are part and parcel of any contract:
Subject
This section names the product for sale or purchase. It also indicates the unit of measure generally employed in foreign trade for specific commodities.
Quality
The quality of machines and equipment is to be in conformity with the technical specification of the contract. The quality of raw materials and foodstuffs is determined, as a rule, by standards, by sample, by description.
Price
The price stated in a contract may be firm, fixed or sliding. Firm prices, are not subject to change in the course of the fulfillment of the contract. Fixed price — is the price governing in the market on the day of delivery or for a given period. Sliding prices are quoted for machinery and equipment which require a long period of delivery.
Assignments
I. Memorise the following words and phrases:
duly |
належним чином |
counterpart |
партнер |
erection |
монтаж, монтування |
putting into operation/ commissioning |
уведення у виробництво
|
lease |
оренда |
on a compensation basis |
на компенсаційній основі |
compensatory deal |
компенсаційна угода |
to make out a contract |
складати контракт |
terms of delivery |
умови постачання |
force majeure |
форс-мажор, нездоланна сила, надзвичайні обставини; integral part/part anind parcel |
unit of measure |
одиниця виміру |
intergral part/part and parcel |
невід’ємна частина |
commodity |
товар |
in conformity with |
згідно з |
by sample |
за зразком |
quote a price |
призначати ціну |
subject to |
який підлягає (чомусь) |
firm /fixed /sliding prices |
тверді /фіксовані/ змінні ціни |
II.Answer th equestions:
1. What are the essential items of a contract?
2. What information is contained in different sections of a contract?
3. How is quality determined in a contract?
4. What sort of prices may be indicated in a contract?