Discussing the guarantee period

The guarantee period is also discussed before signing a contract. As a rule the guarantee period is three months from the date of putting the engines into operation, but not more than six months from the delivery date. The Buyers may find it rather short and they would like the guarantee period to be extended by two months respectively. They argue that the usual guarantee period for this type of goods is longer. We argue that our model of engines is of a new design and only a small number of them has been manufactured so far. Although we have good reports about their performance we can't formally guarantee their reliability for a longer period.

The Buyer also suggests that the contract will specify that if any defects are found during the guarantee period we are to correct them promptly and at our expense. We agree that this is our usual obligation but, of course, we do that if we are responsible for the defects. If they appear through the Buyer's fault, we are not responsible for them.

 

Then we discuss one more possibility. If the Buyer would like some faulty parts to be replaced the replacement will be delivered by the Seller on the following terms: the Seller will try to supply them immediately and pay the cost of their insurance and transport. That suits the Buyer. And if the Buyer wants special service visits of the Seller's engineers to be arranged after the guarantee period the Seller can arrange such services. But the Buyer should authorize such visits and pay the engineer's fare to and in their country, hotel expenses and the cost of each job he will do.

Discussing the guarantee period and delivery dates

Black: I’ve seen your Drilling Rig Model B-3 in operation.

Socolov: And how did you find it?

Black: Oh, I am quite satisfied with its efficiency.

Sokolov: We thought you would be. We've been selling the machines for the last few years and all our customers are satisfied with them.

Black: The machine is certainly good. Now there are some points I'd like to discuss. Can you make us an offer for shipment in April-May?

Sokolov: Yes, in how many lots would you like the machines to be shipped?

Black: In two lots of 5 machines each.

Sokolov: We could ship the first lot at the beginning of April and the second in the middle of May. Is that all right?

Black: Yes, that suits us very well. What's your guarantee period?

Sokolov: 12 months from the date of putting the machines in operation and not more than 15 months from the date of shipment.

Black: We didn't expect it to be as short as that. We hoped to get at least 18 and 24 months respectively.

Sokolov: I am afraid that goes against our usual practice.

Black: Please try and see our point of view. This is our trial order and we'd like to have a longer guarantee period.

Sokolov: Well, if you insist, we can meet you half way and extend it to 15-18 months respectively.

Black: Thank you. Now we'd like you to specify payment terms.

Sokolov: You are to open a Letter of Credit within 7 days after you receive our notification of readiness.

Black: Then I think, we can accept the terms.

Sokolov: When will you be able to send us your formal order?

Black: In about 10 or 12 days and I hope the order will lead to further business between our firms.

Sokolov: Yes, I hope so too.

 

Discussing inspection and tests

During the talks we also clarify the question of inspection and tests. The Buyers would like their inspectors to be present at the tests since it is going to be their trial order. We agree to that and undertake to send the Notification of Readiness for the Test well in advance. The Buyers would like it to be sent rather early (at least 45 days before the date of the test). The Buyers don't want to have any troubles if Notifications are delayed and as a result their inspectors can't arrive at the plant in due time. On our part, we expect a Release Note for shipment to be signed immediately after the tests are carried out and the Test Report is submitted. Otherwise we won't be able to arrange shipment of the goods in time. The Buyers promise that their inspectors will do that by all means if the results of the tests are satisfactory.

A visit to a factory

Mr. Nikitin, an inspector of Techmachimport, arrived in Manchester. He was to inspect the engines under their order and take part in the tests in accordance with the arrangements between Mr. Kozlov and Mr. Lipman.

Mr. Collins, Sales Manager of Goodman and Co., met him at the station. While they were walking along the platform Mr. Collins told Mr. Nikitin that everything was ready for inspection and the Chief Engineer of the factory was expecting him in the afternoon. Mr. Collins brought Mr. Nikitin to the Ambassador Hotel where they had reserved a room for him. They arranged to meet in two hours.

At the testing department of the factory

Collins: Mr. Nikitin, this is our Chief Engineer, Mr. Jones.

Nikitin: How do you do, Mr. Jones?

Jones: How do you do, Mr. Nikitin. I'd like to tell you that we've already started testing the engines. The preliminary tests show that the engines meet all your technical requirements.

Nikitin: Very good. But I'd like you to make a few temperature tests if possible. Jones: This is just what we’re going to do now.

(After the tests...)

Nikitin: I think, Mr. Jones, there are some defects in the motor. The quality of the insulation isn't quite up to standard.

Jones: Isn't it? Then we'll try and do our best to improve it.

Nikitin: I'd like you to. I hope it won't cause any delay in shipment.

Jones: No, I think we'll be able to ship the engines without delay. Now we are a little ahead of schedule and it won't take us more than 3 or 4 days to eliminate the defects.

Nikitin: That's fine.

Jones: Is there anything else you want us to change?

Nikitin: No, nothing but the insulation. The rest is all right. I'm pleased with the results of the tests. Thank you.

Discussing Packing

Then the Buyer brings up another matter: he wants to know what kind of packing we usually use. We answer that we pay special attention to the matter. Our goods need seaproof packing. So generally some parts are wrapped up in polythene and the whole units are then put into wooden boxes or crates. All this ensures their safe delivery and makes our products really competitive and attractive for overseas markets. The both sides settle all the matters and agree to meet the next day to sign the contract.

Vocabulary

reasonable price – умеренная, доступная цена

to make a discount – предоставить скидку

to consider a price – обсуждать, обдумывать цену

acceptable price – приемлемая цена

to accept a price – принимать цену

at the world market – на мировом рынке

to give a good discount to the customers – предоставить хорошую скидку заказчикам

to place a trial order – разместить пробный заказ

value of the goods – стоимость товара по контракту

to quote a price – назначать цену, котировать цену

competitor – конкурент

conclude a transaction – заключить сделку, соглашение

machine-tool – станок

to go up – подниматься, расти (о ценах)

to be in touch with smb. – быть в контакте с кем-либо

to reduce a price – снижать цену

to open a letter of credit – открыть аккредитив

to undertake – брать на себя ответственность, гарантировать

to deliver the balance of the goods – доставлять товар

lot (consignment) – серия, партия товара

delay in shipment – задержка с отгрузкой

to provide shipping facilities – обеспечивать тоннаж

CIF (cost, insurance, freight) – стоимость, страхование и фрахт, сиф

to put into operation – вводить в эксплуатацию (действие)

delivery date – дата поставки; срок поставки

to extend by – продлевать (о сроке) на

so far – до сих пор, пока, до настоящего времени

to have good reports – иметь хорошие отзывы

performance – технические характеристики, эксплуатационные качества

to specify – точно определять, уточнять, устанавливать, детально излагать

to correct any defects promptly – устранить любые повреждения быстро (сразу)

expense – издержки, затраты, расходы

to be responsible for the defects – нести ответственность за дефекты

faulty part – бракованная деталь

to replace – заменять, замещать; восстанавливать

to supply – снабжать, поставлять, доставлять

to suit – подходить, удовлетворять требованиям, устраивать

drilling rig – буровая установка

efficiency – производительность

to meet smb. half way – пойти кому-либо навстречу (удовлетворить просьбу частично)

notification of readiness – уведомление о готовности товара к отгрузке

to clarify the question of inspection and tests – выяснять вопрос контроля и испытаний

to be present at the tests – присутствовать на испытаниях

to arrive at the plant in due time – приходить на завод своевременно

release note – расписка, документ

to carry out (to make) tests – проводить испытания

test report – протокол испытаний, свидетельство о поверке

to submit – представлять на рассмотрение

otherwise – иначе, в противном случае, в других обстоятельствах

to take part in smth. – принимать участие, участвовать в чём-либо

in accordance with smth. – в соответствии с, согласно

preliminary test – предварительный тест

insulation – изоляция

to be up to standard – быть в соответствии со стандартом, отвечать стандарту

to do one’s best – сделать все возможное

to cause – причинять, быть, послужить причиной

to eliminate the defects – исправить дефекты

ahead of schedule – досрочно

to bring a matter – поднимать, затрагивать вопрос

to pay special attention to the matter – уделять особое внимание вопросу

to ensure safe delivery – обеспечивать безопасную доставку

to make products competitive – делать продукцию конкурентоспособной

oversea market – зарубежный рынок

to settle all the matters – уладить, разрешить все вопросы

UNIT 10

Contracts

Contract is a business document which is an agreement for the delivery of goods (services, etc.) approved and signed by both the exporter and the importer.

Contracts are drawn up in accordance with the established form, often on special printed forms to be filled in with basic information by one-time writing. Sometimes, when a transaction is small in volume, a contract may be concluded by telex, which expedites considerably foreign trade dealing.

In foreign trade transactions a contract is drawn up to give legal expression to the intentions of the partners and to guarantee that the obligations contained in the contract will be fulfilled.

By law contracts are made in writing. Standard contracts are not a must. Some articles may be altered and supplemented. According to the purpose and contents, contracts can cover goods, services, licences, patents, technology and know how. As a rule the contract contains a number of clauses, such as: Subject of the Contract, Price, Terms of Payment, Deliv­ery, Inspection and Test, Guarantee, Packing and Marking, Arbitration, Transport, Insurance and other conditions.

Subject of the contract names the product for sale or pur­chase. It also indicates the unit of measure for specific goods, such as oil, wheat, etc.

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.

The contract also names the terms of delivery and delivery schedule which is usually given in the enclosure to the contract.

One of the essential clauses of the contract is the guarantee clause. It says that the supplied equipment and technological process should be in conformity with the latest technical achievements and in full conformity with the technical documentation, technical specifications and conditions of the Contract. If dur­ing the guarantee period the equipment supplied by the Seller proves to have some defects the Seller undertakes to correct these defects or to replace the defective equipment at his own ex­pense.

The contract names packing and marking.

Packing goods for export is a highly specialized job. The equipment should be shipped in export seaworthy packing. If the goods are improperly packed and marked, the carrier may refuse to accept them. Packing can be external (outside) (crate, bag) and internal (inside) (box, pack, flask).

In case of consumer goods packing has a double function. On the one hand it is for protection. On the other – it is for adver­tising.

The Seller should be responsible for any damage or breakage of the goods caused by improper packing.

Marking should be made with indelible paint in two languages on three sides of the case.

Every contract names insurance of Goods.

All sensible businessmen now insure goods for the full val­ue in order to obtain indemnity in case of damage or loss. Insurance is against such risk as fire, burgla­ry, pilferage, damage by water, breakage or leakage.

Every contract contains a force majeure (force major) clause.

Force Majeure is a force against which you can’t act or fight. It usually includes natural disasters such as an earth­quake, flood, fire, etc. It also names such contingencies as war, embargo, sanctions. The duration of a force majeure is, as a rule, 4 or 6 months. After that the Buyer has the right to cancel the contract. The Seller in this case has no right to claim any com­pensation for his losses.

Vocabulary

to draw up a contract – составить договор

in accordance with smth. – в соответствии с чем-либо

to fill in a form – заполнить бланк

to conclude a contract – заключать контракт, договор

to expedite foreign trade dealing – ускорить оформление внешнеторговой сделки

to give legal expression – законное выражение

intention – намерение, стремление, цель

to fulfil a contract – выполнять контракт

to make a contract in writing – заключить договор в письменной форме

must – настоятельная необходимость, требование

article – статья, пункт, параграф

to alter – изменять, вносить изменения, переделывать

to supplement – добавлять, дополнять

purpose – цель, намерение, стремление

content – содержание, суть, сущность; значение, смысл

clause – статья, пункт, условие

patent – патент; диплом

know how – техническая документация

subject of the contract – предмет контракта

terms of payment – условия платежа, оплаты

terms of delivery – условия поставки

insurance – страхование

to indicate the unit of measure for specific goods – указывать единицу измерения на конкретные товары

to state a price – устанавливать цену

firm price – устойчивая, твёрдая цена

fixed price – твёрдая цена

sliding price – скользящая цена

to be subject to change – быть предметом изменения

in the course of the fulfillment of the contract – в ходе выполнения контракта

to quote a price – назначать, котировать цену

to require – требовать

delivery schedule – график поставок

enclosure – приложение, вложение (документа)

to supply – снабжать, поставлять, доставлять

to be in conformity with smth. – быть в соответствии с

the latest technical achievements – новейшие технические достижения

to undertake – предпринимать; брать на себя; гарантировать

to replace the defective equipment – заменять неисправное оборудование

to ship – погружать груз на корабль, грузить

carrier – перевозчик

to refuse to accept the goods – отказаться принять товар

external (outside) packing – внешняя упаковка

crate – (деревянный) ящик; тара для упаковки

internal (inside) packing – внутренняя упаковка

box – коробка; ящик

flask – фляга; флакон; склянка

consumer goods – потребительские товары, товары народного потребления

to be responsible for smth. – быть ответственным за что-либо

damage – вред, повреждение; дефект, поломка; убыток, ущерб, урон

breakage – поломка; авария, повреждение

to be made with indelible paint – быть сделанным несмываемой краской

sensible businessman – здравомыслящий, разумный бизнесмен

to insure goods for the full val­ue – застраховать товар на полную стоимость

to obtain indemnity – получить компенсацию, возмещение

fire – пожар; возгорание

burglary – кража со взломом

pilferage – мелкая кража

leakage – протечка, течь, просачивание; утечка

force majeure – форс-мажор, чрезвычайные обстоятельства

natural disaster – стихийное бедствие

earth­quake – землетрясение; катастрофа

flood – наводнение, потоп, половодье

contingencies – непредвиденные обстоятельства

to have a right to – иметь право

to cancel a contract – расторгнуть контракт