Active vocabulary

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Transaction – угода, банківська операція;

To be drawn up – бути складеним;

Intention – намір;

Obligations – зобов’язання;

To be fulfilled – бути виконаним;

To state – зазначати, вказувати;

According to – згідно з …;

To cover – охоплювати, покривати;

To sign – підписувати;

Signature – підпис;

Clause – стаття (контракту);

Party (of the Contract) – сторона (контракту);

Total cost (amount, sum) – загальна вартість (сума);

Packing and marking - пакування та маркування;

Guarantees – гарантії;

Sanctions – санкції;

Claims – претензії;

Insurance – страхування;

Force- Majeure circumstances – форс-мажорні обставини;

Payment – оплата;

To require – вимагати;

To meet the requirements - виконувати вимоги;

Currency – валюта, грошова одиниця;

To protect against – захищати від;

Indelible paint – незмивна (водостійка) фарба;

In conformity with – за згодою (у відповідності) з;

To be penalized – бути оштрафованим;

In favor (of) – на користь (кого, чого);

Alteration – зміна, переробка;

Amendment – поправка, виправлення;

Transfer –передача (чогось комусь).

Exercise 1. Translate the following word-combinations and expressions into Ukrainian:

1. Business transaction; trade transaction; useful transaction.

2. The Buyer stated all the obligations.

3. Number of clauses; a lot of clauses; few clauses; the following clauses.

4. Names of the parties; number of the parties; parties of the contract.

5. Guarantees are stated in this contract.

6. The Seller makes insurance; insurance is made in favor of the Buyer.

7. Terms of the payment; time of the payment; terms of delivery; exact terms; currency of the payment.

8. To protect the goods; to protect against any damage; to protect nature against the pollution.

9. To meet the requirements of the parties; to require goods in time; to meet the stated requirements.

10. Any alterations; alterations and amendments are made by the contracting parties.

Exercise 2. Read and translate the text about the contract:

CONTRACT

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

The contract forms the basis of transactions between the Buyer and the Sellers and great care is exercised when the contract is being prepared that all the legal obligations have been stated.

According to the purpose and contents, contracts can cover: goods, services, technology, know-how, etc.

By law contracts are made in written and signed by the contracting parties.

As a rule the contract contains a number of clauses (articles) arranged in definite sequence.

Here you can see some clauses of the contract:

1. Names of the Parties;

2.Subject of the Contract;

3.Price and Total Cost (Amount, Sum) of the Contract;

4.Dates and Terms of Delivery;

5.Terms (Conditions) of Delivery;

6.Packing and Marking;

7.Guarantees or Warranty;

8. Sanctions and Claims or Penalty;

9. Insurance;

10. Force-Majeure Circumstances;

11. Arbitration;

12. Other Conditions (Terms);

14. Legal Addresses and Signatures of the Parties.

Exercise 3. Work in 3 groups, read silently and translate the information about some clauses of the contract. Then try to retell this information to the rest of your classmates.

GROUP 1:

1. The article “SUBJECT OF THE CONTRACT” names the product for sale or purchase.

2. “PRICE AND TOTAL COST OF THE CONTRACT”. The price stated in a contract may be fixed, firm and sliding. Fixed price is the price governing in the market on the day of delivery or for a given period. Firm prices are not subject to change in the course of the fulfillment of the contract. Sliding prices are quoted for machinery and equipment which require a long period of delivery.

3. The exact dates and terms of “DELIVERY” are defined in this clause of the Contract.

GROUP 2:

1. The clause “PAYMENT” includes terms of the payment, defines the currency of payment and the order of the payment between contractors.

2. “PACKING AND MARKING”. The packing must protect the goods against any damage during the carriage. The marking should be clearly made with indelible paint on the top of the box and on its two opposite sides (ex. Handle with care; Do not drop; Keep dry; etc.).

3. The article “GUARANTEES” says, that the Seller guarantees the quality of the delivered merchandise in conformity with the latest technical achievements and the period of guarantee will meet the requirement mentioned in the Contract.

GROUP 3:

1. The clause “SANCTIONS AND CLAIMS” includes the cases of breach of the Contract. Most often the Buyer makes quality and quantity claims on the Seller. The Party which fails to meet its contract obligations is penalized.

2. The article “INSURANCE” includes three main terms of insurance:

a) what is insured what risks the goods are insured from

b) who insures

c) in whose favor the insurance is made.

3. The article “OTHER CONDITIONS” includes the order of the entry of any alterations and amendments, and the order of the transfer of the parties rights and obligations to a third party.

Exercise 4. Answer the questions:

1. What is the purpose of the contract?

2. What can the contract cover according to its purpose?

3. What are the main clauses (articles) of the contract?

4. Is the contract a written document?

5. What sort of prices may be indicated in the contract?

6. What is indicated in the article “Dates of Delivery”?

7. What is included in the clause “Payment”

8. What are the packing requirements?

9. What are the requirements for marking the goods?

10. What is indicated in the article “Guarantees”?

11. What kind of claims are made by the Buyer?