BUSINESS CONTRACTS

Theme 1. KINDS OF BUSINESS CONTRACTS.

ESSENTIAL CLAUSES.

1. Discuss the following questions:

In your opinion what is a contract? When and why are they used? Are they
important for doing business? What types of contracts do you know?

2. Read and translate the text.

A contract is a verbal or written
agreement to do some work in exchange
for some benefit, usually a payment. The
purpose of a contract is to establish the
agreement that the parties have made and
to fix their rights and duties in accordance
with that agreement. Parties to a contract
are bound by the terms to which they have
agreed. As a general rule, contracts
equitably made by competent persons, are
valid and enforceable in the courts.
Although the kinds of business contracts are numerous, they are typically
divided into four categories: sales-related agreements, employment-related
agreements, leases and general business contracts.
A sales contract is an agreement between a buyer and seller covering the sale
and delivery of goods, securities, and other personal property. An agreement for
the sale of goods provides specific information about the goods or services being
sold. When a business sells goods to a buyer paying in installments, a security
agreement gives the business the right to repossess the goods if the buyer
doesn't make payments. A bill of sale legally transfers the title of property and
is most commonly used for items such as cars and boats.
Businesses may have contracts with their employees, such as an employment
agreement, employment separation agreement, employee non-compete
agreement or confidentiality agreement. For non-employees providing
services, a business may have an independent contractor agreement or
consulting agreement.
The two types of leases are real property leases and equipment leases. Real
property leases, sometimes called commercial leases, involve renting buildings,
land or other space. An equipment lease might involve anything from renting a
copier to a fleet of construction equipment.
General business contracts are available for almost any type of business
arrangement. Someone who buys a franchise will enter into a franchise
agreement with the home office. Businesses that decide to work together or
pool resources on a project will have a partnership agreement or joint-

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 venture agreement. With an indemnity agreement, one party agrees to protect
the other party against specified future claims or losses.
When doing business, the general rule to remember is, if something is not in
writing, it's usually not legally enforceable. By law contracts are made by
Ukrainian / Russian foreign trade organizations in a written form. It is much
safer than to rely on someone’s word. Written contracts provide more certainty
for both parties than verbal agreements. They clearly set out the details of what
was agreed. Matters such as materials, quality, timeframes, payments, a
procedure to follow in the event of a dispute, etc. can all be set out in a
contract. A written from the outset contract will minimise business risks by
making the agreement clear and specifying how either party can terminate the
contract before the work is completed.
When striking a deal standard contracts are widely used. A ‘standard form’
contract is a pre-prepared contract where most of the terms are set in advance
and little or no negotiations between the parties occur. Often, these are printed
with only a few blank spaces for filling in information such as names, dates and
signatures. However, standard contracts are not a must. Some articles may be
altered and supplemented. Here are some of the items which arе part and
parcel of any contract: legal title of the contracting parties, subject of the
contract, quality, price, delivery and payment terms.
Clear contracts make good business relationships because they help both parties
understand their rights and obligations.

Parties
The names, addresses and representation of parties to the contract are set out in
the beginning.

Subject
This section names the product fоr sale or purchase. It also indicates the unit of
measure generally employed in foreign trade for specific commodities.
Contracts for bulk cargo contain a stipulation 'about' or 'plus or minus... per
cent', denoting the permitted quantity tolerance.

Quality
The quality of goods, machines and equipment as well as of the completed
work 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 the contract may be firm, fixed or sliding.
Firm price. Firm prices are not subject to change in the course of the
fulfillment of the contract.

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 Fixed price. It is the price governing in the market on the day of delivery or for
a given period.
Sliding price. These prices are quoted for machinery and equipment which
require a long period of delivery.

3. Answer the following questions

1. What are the kinds of business contracts? What aspects do they deal with?
2. Why are written contracts widely used?
3. What is a standard form contract? Does it have any benefits for contracting
parties?
4. What is a sales contract? Speak on its peculiarities.
5. What information is contained in a contract? Name the essential clauses of a
sales contract.
6. How is quality determined in a contract?
7. In what way are prices fixed in a contract?

4. Find English equivalents to the following:

Договір купівлі-продажу, укласти угоду (2), типовий контракт, усна
домовленість, специфікації, купча, невід'ємна частина, претензія, вагомі
умови контракту, юридична назва, договірні сторони, змінні ціни, оренда
нерухомості, одиниця виміру, товар (2), угода про забезпечення, розірвати
договір, те, що може бути виконане в суді, фіксовані ціни, з самого
початку, доповнювати, встановити заздалегідь, вилучати (майно),
письмова угода, платіж, платити в розстрочку, припустиме відхилення,
оренда обладнання, насипний або наливний вантаж, умова, терміни,
консалтингова угода, викласти подробиці, угода про спільне підприємство,
призначати ціну, дійсний (чинний), користь, цінні папери, справедливо
складений, договір підряду, той, що підлягає змінам, терміни, за зразком,
тверді ціни, комерційна оренда, у разі виникнення спору, встановити в
договорі, угода співробітника про утримання від конкурування, робота, що
завершена, мінімізувати бізнес-ризики, право власності, точно визначати
(обумовлювати), перемовини, франчайзинговий договір, змінювати
(переробляти), контракт перевезення, угода відшкодування, контракт
страхування, трудовий договір, угода про партнерство, угода про
конфіденційність, договір про поділ праці, розірвати договір.

5. Translate the following words and word combinations into Ukrainian:

Contract of sale, written agreement, a bill of sale, valid, fixed prices, real
property lease, to pay in installments, to establish the agreement, to set out the
details, payment, to contract, the completed work, essential clauses of a contract,
confidentiality agreement, to be enforceable in the court, а claim, to strike a
deal, to terminate the contract , an employment agreement, to set in advance,
consulting agreement, equitably made, part and parcel, legal title, employee non-
compete agreement, unit of measure, a franchise agreement, an independent
contractor agreement, to supplement, goods (commodity), equipment lease,
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 permitted tolerance, commercial lease, bulk cargo, to repossess, to specify, the
title of property, joint-venture agreement, to minimise business risks, from the
outset, specifications, negotiations, stipulation, by sample, verbal agreement, in
the event of a dispute, to set out in a contract, a security agreement, the
completed work, to quote a price, contracting parties, an indemnity agreement,
benefit, subject to change, timeframes, firm prices, in conformity with, to
stipulate, in accordance with, to alter, a standard contract, a partnership
agreement, sliding prices, to supplement, contract of carriage, contract of
insurance, employment separation agreement, timeframes, securities.

6. Translate into Ukrainian:

Extract from a contract "

Contract No._________
«Rosneft' Ltd.», prosp. Neftyanikov, 71, Urengoy, 629300, Russia,
hereinafter referred to as «the Seller», represented by the General
Director Mr. Igor M. Zolotaryov, acting as per the Company Charter,
on the one hand, and «Ukrpetrol Ltd.», vul. Kosmicheskaya, 54, Uzhgorod,
88015, Ukraine, hereinafter referred to as «the Buyer», represented by the
Director Mr. Vladislav P. Mitrokhin, on the other hand, collectively
hereinafter referred to as «the Parties», have concluded (signed)
the present Contract, hereinafter referred to as «the Сontract», for as
follows:
1. SUBJECT OF THE CONTRACT

The Sellers have sold and the Buyers have bought on DDP Uzhgorod terms
(have bought under the conditions herein contained) the goods in
accordance with the Specifications attached to the present Contract and
forming integral part thereof.

2. PRICE AND TOTAL AMOUNT OF THE CONTRACT

Prices for the goods are fixed in___________ and to be understood DDP_____
including the cost of packaging and marking. The Goods are delivered in the
irrevocable packaging. The cost of the packaging is included into the price of
the Goods.
The total amount of the present Contract comprises______________.

3. TIME AND DATE OF DELIVERY

The goods are to be delivered in the time stipulated in the Specifications

attached to the present Contract.
The date of_____________ is to be considered as the date of delivery.
Delivery before the time stipulated in the Contract as well as partial delivery of
the goods without accessories is not allowed without the Buyers' consent.
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 Prices, grades, quantity of the production and Consignee shall be specified in
the specifications for each consignment lot.
4. QUALITY
The quality of the goods is to be in conformity with the requirements given
in the Specifications attached to the Contract.
The goods are to be of the latest design and manufactured of the first
grade materials. The Sellers on their own initiative but at the Buyers'
consent or request are to make improvements of the design and the
materials of which the goods are made taking i n t o account the latest
technical achievements in t h i s field without any extra charges or
postponement of the d e l i v e r y time.
The quality of the goods is to be evidenced by a Certificate of Quality issued
by the manufacturing works, or by a Letter of Guarantee of the Sellers.

7. Find in the extract from a contract English equivalents to the following:

Іменована надалі, додавати до, загальна сума, в особі Генерального
директора, що діє на підставі Статуту, строк / дата постачання,
некомплектна поставка, спільно іменовані далі «Сторони», зі/без згоди
Покупця, першосортний матеріал, поліпшувати, партія товару, видатки,
затримка (зміна) строків постачання, підтверджувати (засвідчувати), завод-
виготовлювач, сертифікат якості, гарантійний лист, вантажоодержувач,
купує на умовах, викладених у цьому контракті, марко-розміри, товар
поставляють у безповоротній тарі, згідно з, підписати контракт про
нижченаведене, відповідно до умов.

8. Translate the following words and word combinations into Ukrainian:

Сharges, represented by the General Director, аcting as per the Company
Charter, to attach to, postponement of delivery time, the irrevocable packaging,
to buy under the conditions herein contained, first grade materials, at/without
Buyer's consent, Consignee, manufacturing works (factory), Letter of
Guarantee, hereinafter referred to as, total amount, grades, collectively
hereinafter referred to as «the Parties», to evidence, Certificate of Quality, time
/date of delivery, to make improvements, partial delivery without accessories,
consignment lot, in accordance with, stipulated, in conformity with the
requirements.

9. @ Translate the sententces into English:

A. 1. Закрите акціонерне товариство ЗАВОД «УКРКАБЕЛЬ», вул. Київська
7, м. Луганськ, 91015, Україна, іменоване надалі «Продавець», в особі
Генерального директора пана П. Г. Микитенка, що діє на підставі Статуту, з
одного боку, й ІНТЕРКАБЕЛЬ ЛИМИТЕД, офіс 26, Ноттинг Гейт 22, м.
Лондон W11 3JE, Великобританія , іменована надалі «Покупець», в особі
Директора пана В. Р. Кропоткіна, що діє на підставі Статуту, з другого боку,
спільно іменовані далі «Сторони», підписали цей контракт, іменований далі
«Контракт», про нижченаведене.
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 2. Предмет договору.
Продавець: бере на себе зобов’язання поставити і передати у власність
Покупцю продукти харчування (далі - Товар), а Покупець зобов’язується
прийняти й оплатити Товар - у порядку і на умовах, передбачених
Договором.
3. Товар повинен відповідати за якістю стандартам, технічним умовам та
іншій документації, що встановлює вимоги до якості Товару, згідно з
діючими в Україні нормами. Товар повинен супроводжувати сертифікат
якості й відповідності, видаваний заводом-виготовлювачем, а також
сертифікат про походження Товару.
4. Загальна сума Договору визначається загальною вартістю Товару, який
поставить Продавець, прийме та оплатить Покупець у рамках Договору.
5. Кількість, асортиментний перелік Товару визначаються в усному або
письмовому замовленні Покупця.
6. Поставка Товару здійснюється за усною або письмовою домовленністю
Сторін.
B. 1. Продавец продает, а Покупатель покупает на условиях, изложенных в
настоящем Контракте, кабельно-проводниковую продукцию, именуемую
далее «Товар», согласно спецификациям на каждую отгружаемую партию
Товара.
2. Общая стоимость Контракта составляет 50 000 000. 00 российских
рублей. Товар поставляется в невозвратной таре. Стоимость тары входит в
стоимость Товара.
3. Цена, марко-размеры и Грузополучатель будут указываться в специфика-
ции на каждую отгружаемую партию товapa. Цена может изменяться в за-
висимости от стоимости сырья и материалов. Изменение цены согласо-
вывается сторонами.
4. Качество поставляемого Товара должно соответствовать ГОСТу.

10. Find in the ex.9 Ukrainian /Russian equivalents to the following English
words and word combinations:
Cable and wire, Closed Joint-Stock Company, to be entitled to/ to be responsible
for, by oral agreement, to be accompanied with the Conformity Certificate, to
hand over the goods to sb., to take the delivery, to correspond to GOST, the
Certificate of Origin, a range of goods, to coordinate the change of price, an
order.

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