Various Types of Modern Contracts



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Various Types of Modern Contracts



There can be different kinds of contracts. Some of the more frequently used ones need to be taken into account. To begin with, there are employment contracts. A standard definition is called for. It reads as follows: employment contract (agreement)/labour contract is a legally binding agreement of employer and employee, stating the responsibilities and obligations of both parties (контракт о работе по найму – это договор работодателя и работника, имеющий юридическую силу и формулирующий взаимные обязательства и прав каждой из сторон). Experts in the field provide a host of useful tips for someone who is considering a contract of employment: always discuss the terms and conditions of employment before you agree to work; be sure to understand your duties and responsibilities, title, job security, compensation package including, but not limited to, salary, bonus program, fringe and employee benefits.

Other types of contract include: service contract – an agreement between a company and a customer in which the company agrees to repair equipment the customer has bought or rented from it; an agreement between a company and one of its directors, stating what the director will do, how much they will be paid, etc.; an agreement between a company and a customer, stating what product or service the company will provide, and any arrangements for delivery, payment etc. (New Longman Business English Dictionary). Hire purchase contract– an agreement to buy something by making payments over a period of time (New Longman Business English Dictionary).

 

4. They say that one of the most difficult for its understanding and execution types of contract is a Charter Party Agreement (or simply charter)? Define a charter and explain the general purposes and peculiarities of such contracts. What does demise and not by demise charters mean? Define the terms time and voyage charters. Hope the materials of Appendix XIX and the following text will help you to understand this theme better. Read and translate the text from Russian into English and be ready for its discussion:

 

ЧАРТЕР В РОССИИ

Роль внешней торговли России с развитием рыночных отношений неуклонно возрастает. При этом основное место во внешнеторговых перевозках принадлежит морскому торговому флоту. Работа российских судов в загранплавании, особенно при перевозках грузов иностранных фрахтователей, осуществляется в весьма сложных и специфических условиях, требующих от работников судовладельческих компаний и портов, командного состава судов, других участников транспортного процесса широкой осведомленности в вопросах коммерческой эксплуатации.

В международной практике коммерческо-правовые условия перевозки и взаимоотношения сторон регламентируются договором морской перевозки. В настоящее время существует несколько форм такого договора: рейсовый чартер, букинг-нот, тайм-чартер, димайз-чартер и др. Чартер является наиболее распространенным видом договора морской перевозки. В зависимости от сложившейся практики и специфики перевозок для различных родов груза и отдельных направлений применяются различные формы (проформы) стандартных чартеров. В международном торговом мореплавании обычно используются типовые формы чартеров, разработанные, одобренные или рекомендованные такими авторитетными в области судоходства неправительственными международными организациями, как БИМКО, Британская палата судоходства, ИМО и др.

От знания условий основных проформ чартеров участниками транспортного процесса, грамотного и правильного их применения в большой степени зависят коммерческие результаты рейса, а также сведение к минимуму возможностей возникновения претензий по перевозкам. Следует отметить, что язык чартеров весьма специфичен, а отдельные формулировки нелегки для понимания даже при свободном владении английским языком. Этим и обусловлена необходимость перевода на русский язык проформ чартеров, используемых российскими судовладельцами в международном судоходстве. При работе с чартерными проформами следует помнить, что в случаях каких-либо разногласий отдельных статей и оговорок или положений таких договоров предпочтение отдается тексту на английском языке.

 

5. What types of style of writing contracts do you know? Describe their main peculiarities. What do explicitand implicit contracts mean? Do you think that different types of law and cultures influence on the contract style? In order to answer these questions read and translate the following text and be ready for its discussion:

 

Americans prefer explicit contracts: the document details all the arrangements made. The written word is understood to be the most binding. The contract is a working document that will be changed. The contract is a working document that will be changed during negotiations. Written contracts are not flexible or easy to change.

Unlike Americans, the Japanese prefer implicitcontracts: they present the most general outline of the contractual obligations; clauses are referred to as articles. In Japan, contracts do not play a central role in negotiations. In fact, a contract is usually a small detail at the end of long process of negotiations. After all aspects of the deal have been discussed and all decisions have been made verbally, a contract is written up reflecting the decision. The written document is presented at a meeting only after both (or more) parties have carefully discussed the final agreement.

6. What major contract elements do you know? What do the terms provision, article and clause mean? Describe the structure and major contract clauses.

7. What are the major legal requirements for an enforceable contract? Describe them briefly. Describe also the main structural elements of a contract.

8. What is a contract pro-forma? Why should we use it within the process of a current contract execution? Which types of pro-formas do you know? What is the difference between contract executionand contract performance?

9. What do the general provisionsmean for the enforceable contract? (While answering don’t forget that some contract executors consider generals as miscellaneous).

15. Describe the role of the “Preamble (Preface)” to the contract.

16. What is the main purpose of the “Definitions” to the contract? Why do we consider them as the key terms (words) for the contract? Define and explain the meaning of the following main charter terms: notice of readiness, laytime (days (time), freight, demurrage, despatch.

17. “Headings” – “Article headings are included for convenience only and shall not be considered in interpreting this Contract” Explain such thesis. What should you do with headings within the arbitration process?

18. “Singular and Plural Forms” – In this Contract, words importing the singular include the plural and vise versa, as appropriate”. Let’s prove this thesis within the discussion.

19. “Language” - If this Contract is executed in both Russian and English versions and there is a conflict between the Russian and English versions, the English version shall govern. Comment this contract provision on the basis of Contract Governing Law.

20. Why do we designate the “Governing Law” as the major contract provision? Prove your opinion. Which types of contract (governing) law should you take into account within the contract texts execution and interpretation?

21. What does the term entire contractmean and which role does it play within the process of contract execution and performance? Why do some interpreters use the term last version of the contract instead of entirecontract?

22. What does the term severability(separability) mean? Explain the mechanism of practical use of this term.

23. What are the basic meanings of severability (separability) and entire contract to the enforceable contract? Are there any differences between them? What are they?

24. What do the terms contract addendum, amendment and appendixmean? Are there any differences between them?

25. Terms of delivery are one of the most important provisions on each trade contract execution and performance. Generally all of them are governed by the INCOTERMS (international commercial terms) system within international trade relationships. Describe the main terms of such system and explain their importance for international contract performance. Hope the following materials will help you to answer these questions. Read and translate the text and be ready to discuses it from the positions of contract holder and linguistics:

INCOTERMS 2010*

The global economy has given businesses broader access than ever before to markets all over the world. Goods are sold in more countries, in larger quantities, and in greater variety. But as the volume and complexity of global sales increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted.

When goods are sent from a seller to a buyer, each party has to know exactly which of the costs and risks of transportation he has to bear. In order to avoid disagreements, the contract usually stipulates one of the 11 terms of delivery drawn up by the Chamber of Commerce. These are known as Incoterms(International Commercial Terms). They determine which party is to bear the various costs involved in transportation and the point at which the risks are to pass from the seller to the buyer (known as passing risks). Generally Incoterms rules explain a set of three-letter trade terms reflecting business-to-business practice in contracts for the sale of goods.

Since the creation of Incoterms rules by ICC in 1936, this globally accepted contractual standard has been regularly updated to keep pace with the development of international trade. The Incoterms 2010 take account of the continued spread of customs-free zones, the increased use of electronic communications in business transactions, heightened concern about security in the movement of goods and changes in transport practices.

 

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* ИНКОТЕРМС –свод унифицированных правил толкования торговых терминов, разработанный Международной Торговой Палатой (МТП) (последняя ревизия произведена в 2010 г.), и определяющих права и обязанности, как покупателя, так и продавца в международной торговле, позволяющих сложный комплекс условий запродажного контракта выразить всего лишь в трех буквах. ИНКОТЕРМС предназначены для урегулирования условий перехода риска от продавца к покупателю в месте, удобном для проверки груза.



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