V. Translate the following part of contract into Russian and answer the questions

The Seller will take care of, and bear all the expenses connected with, obtaining the necessary license for exporting the goods under the present Contract from the Port of Origin to the Ukraine.

Not later than a month from the effective date of the Contract, the Seller is to advise the Buyer if the export license has been granted or is not required.

If the Seller is unable to obtain the export license and the Buyer is unable to obtain the import license within the time stipulated above, or the export/import license is revoked by the appropriate authorities of the Seller's/Buyer's country before the deliveries are completed, the Seller/Buyer will have the right to cancel the Contract wholly or par­tially.

a) Who is supposed to obtain the export/import license?

b) What right will the parties exercise if the appropriate authorities revoke the import/export license?

VI. Work as one group. Decide which type of contract is characterized by the following descriptions:

a) the terms of delivery in accordance with which the Seller pays for transportation and insurance of goods until they arrived at the ship and the Buyer pays for loading the goods;

b) the terms of delivery in accordance with which the Seller pays for transportation and insurance of goods to the point of loading and their shipment on board a ship;

c) the terms of delivery in accordance with which the Seller pays for loading and transporting goods but the Buyer pays the insur­ance costs once the goods have been loaded;

d) the terms Of delivery in accordance with which die Seller pays for transportation to the port of destination, costs of loading and arranges marine insurance of the goods for the time of trans­portation.

VII. Which word –combination is odd in the following list?

bill of lading certificate of origin

waybill packing sheet

shipping specification delay in delivery

certificate of quality insurance policy

Unit 4.5

The Main Characteristics of the Contract of Sale

A written contract of sale is made out in the form of a document signed both by the Buyers and the Sellers.

When there is no necessity of introducing special terms and conditions into the contract of sale, Russian 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

10. Force majeure circumstances

11. Arbitration

12. General provisions

Also, there may be standard General Conditions which form an integral part of the contract and are either printed on the reverse side of the contract or at the foot of the face of the contract or attached to it.

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' specialist, 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.

When detailed special terms and conditions are introduced into the contract or the agreement, it is customary to draw up an individual contract or agreement in each particular case (e.g. a turnkey contract, a license agreement).

Sometimes Russian organizations use standard forms of contracts worked out by the biggest federations and associations of merchants and importers abroad, by exchanges, Chambers of Commerce and the like for use in particular trade.

These standard forms of contracts, for example, are used in grain trade, seed, sugar, cotton and other trades.

In the sale of Russian timber c.i.f. British ports a special form of contract has been adopted by the Timber Trade Federation of the UK and by V/O "Exportes".

Text-study

I. Learn the following words

contract of sale - договор продажи

clause - статья, пункт, условие

total value - общая стоимость

arbitration - арбитражное разбирательство

sophisticated - сложный; современный, передовой

supervision erection - 1) возведение; монтаж; 2) сборка; установка

turnkey contract - контракт на возведение и сдачу в эксплуатацию объекта "под ключ"

II. Answer the following questions:

1. What main activities does foreign trade comprise?

2. What is the principle in dividing all commercial activities into basic and auxiliary ones?

3. What are the types of foreign trade transactions?

4. What basic types of contract do you know? Describe them.

5. What auxiliary types of contract can you name? Can you describe them?

6. In what way can deals be concluded in capitalist countries?

7. What are the requirements to the conclusion of deals in our country?

8. Who is entitled to sign our contracts abroad and at home?

9. How can you find out the names of people authorized to sign contracts abroad?

10. Do license agreements belong to basic or auxiliary transactions?

11. What are the stages in foreign trade activities?

12. What can you say about a compensation (compensatory) transaction?

13. What is the difference between an Insurance Policy and an Insurance Certificate?

14. What is the difference between a Charter Party and a Contract of Affreightment?

15. What kinds of Charter Parties do you know?

16. When may a Standard Contract be used?

17. What Standard Contracts are given in the text?

18. What other Standard Contracts can you name? Describe them.

19. What are the clauses of a Standard Contract?

20.When is it necessary to work out an individual contract? Give examples.

21. What additional clauses may they comprise?

III. Translate the following phrases into English

1. выполнять свой долг; 2. строгое соблюдение взаимных обязательств; 3. заключить крупномасштабную сделку; 4. основные операции, связанные с обменом товарами; 5. отвечать за перевозку товара; 6. гарантировать проведение расчета по платежам в срок; 7. быть действительным в течение 60 дней; 8. иметь право заключать агентские соглашения от имени своего объединения; 9. отвечать за шеф-монтаж; 10. взять оборудование по договору аренды и займа на пять лет; 11. вспомогательные операции, связанные с обеспечением успешного проведения основных; 12. получить обратно должным образом подписанное соглашение; 13. ряд бартерных и компенсационных сделок; 14. предложить компенсацию за ущерб (за повреждение товара); 15. лицензионное соглашение сроком на 10 лет; 16. рабочие характеристики поставленного оборудования; 17. начать рекламную кампанию; 18. общая стоимость контракта; 19. общий объем поставки; 20. составить условия договора аренды и займа; 21. являться неотъемлемой частью контракта; 22. напечатать Общие Условия поставки на обратной стороне контракта; 23. приложить к инициативному предложению список запчастей; 24. обеспечить обучение специалистов покупателя; 25. принимать обсужденные меры (шаги); 26. включить стоимость маркировки и упаковки в цену товара; 27. принять новый типовой контракт; 28. ряд статей контракта; 29. получить большую сумму денег в качестве компенсации за повреждение това­ра в пути; 30. составить контракт на поставку электрооборудования; 31. количество поставленного оборудования; 32. при сложившихся обстоятельствах; 33. проводить шеф-монтаж и пуск оборудования в эксплуатацию; 34. увеличить взаимные поставки товаров; 35. пред­почитать покупку в кредит или в рассрочку; 36. покупая товар у новой фирмы, следует знать ее финансовое положение; 37. ссылаясь на вышеуказанный телекс о наступлении чрезвычайного обстоятельства; 38. как указано выше, особое внимание будет обращено на…; 39. быть более или менее удовлетворенным качеством поставленного товара; 40. в дополнение к нашему телексу вы получите письмо со всеми подробностями о чрезвычайном обстоятельстве и принятых нами мерах.