Unit 7. Negotiating subject of the contract, prices, terms of payment and delivery

1. Subject of the contract - предмет контракта

2. price - цена

3. terms of payment - условия платежа

4. terms of delivery - условия поставки

5. the Buyer - покупатель

6. the Seller - продавец

7. an attractive price - приемлемая цена

8. to get a discount of 5% - получить скидку 5%

9. to be heavy with orders - иметь большое количество заказов

10. to be of high quality - быть высокого качества

11. market share - доля на рынке

12. payment is to be effected - платеж должен быть осуществлен

13. invoice-in quadruplicate - счета в четырех экземплярах

14. Bill of Lading - коносамент

15. Certificate of quality - сертификат качества.

Exercise 2. Повторите в грамматическом справочнике информацию о глаголах "to be" §1, "to have" §3 и переведите предложения на русский язык.

1. We are to discuss the contract terms for buying the processing equipment.

2. The Seller is Rossomon Company of the USA.

3. The head of the Public Joint Stock Company Russian Expo is Mr Smirnov.

4. The equipment is to be sold in accordance with the specifications which are to be attached to the contract.

5. The prices of the Seller are not attractive for the Buyer.

6. The prices are too high, that is why the Buyer would like to have a discount for a large order.

7. The market of Russia is almost vacant and you can expand your market share through that contract.

8. You have to effect the payment in american dollars.

9. We have prepared the following documents:
- invoice in quadruplicate;
- certificate of quality;
- certificate of origin;
- packing list in duplicate.

Exercise 3. Представьте, что вы работаете в компании. Ответьте на вопросы, касающиеся вашей компании и предстоящего контракта:

1. What is your company's name?

2. What does your company produce?

3. How long have you been on the market?

4. What goods are you ready to buy?

5. What goods are you ready to sell?

6. What documents are to be attached to the contract?

7. What discount are you ready to give for your products?

8. Have you got any foreign partners?

9. How long have you been working with this partner?

Exercise 4. Повторите по грамматическому справочнику информацию о простом будущем времени §10 и передайте содержание текста в будущем времени.

Yesterday we discussed our contract with QMZ. According to the contract the Seller sold and the Buyer bought the complete equipment, technology and technical documentation for the processing equipment. The total contract value included equipment, engineering, delivery FOB Russian port, documentation, supervision, personnel training and spares parts. The prices were firm for the whole duration of the contract. They were not subject to any revision except for the force major circumstances. The delivery date was understood to be the date of the clean Bill of Lading, issued in the name of the Buyer, destination Murmansk, Russia. The equipment was to be delivered within 3 months from the date of opening the Letter of Credit.

The LEADER. Ladies and gentlemen! Today we are to discuss the contract terms of buying by the Russian party dairy-produce processing equipment . The selling party is Rossomon company of the USA. I'm glad to introduce the head of the company Mr. Jerald Bunce to you. The head of the Russian Expo joint-stock company is Mr. Smirnov. As you know 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
Contingencies
Penalty and Arbitration
Insurance
Some of these questions were discussed yesterday, today we are to discuss the rest. First of all, I'd like to give the floor to Mr. Bunce.

Mr. BUNCE. Thank you. I'd like to give you information about Subject of the Contract. So, our company Rossomon, as the Seller, undertakes to sell to Russian Expo the complete equipment, technology and technical documentation for dairy-produce processing equipment. This equipment is to be sold in accordance with the Specification which should be attached to the Contract and should form integral part thereof.

The LEADER. To discuss the matter of price, I'd like to give the floor to Mr. Smirnov.

Mr. SMIRNOV. Thank you. As all of us know your company offers us to buy equipment at the price of 3000 dollars for each unit. I should say that your prices are not attractive to us. They are too high. Our order is large enough about 1000 units, so I'd like to ask for a discount for a large order.

Mr. SHERRY. Oh, it's not so easy as it may seem. You know, we are heavy with orders now. We have got orders from France, Italy and Japan as the quality of our machines is very high. And this is our usual price.

Mr. SMIRNOV. Yes, we know that it's your usual price. But look, our Russian market is almost vacant, so we guess you could expand your market share in Russia through the contract with Russian Expo. That's why we would like to have a discount of 5%.

Mr. SHERRY. Oh, I'm afraid that's impossible, we can give you a 2% discount on the price in view of the large order. That's all I can do for you.

Mr. SMIRNOV. We agree to a 2% discount.

Mr. BUNCE. So the total value of the Contract including the complete equipment as well as technical documentation, knowledge and experience /know-how/, engineering, after guarantee spares and services is 2 940 000 dollars.

The LEADER. Thank you Mr. Bunce. Now I'd like to give the floor to Mr. Bell to discuss the terms of payment.

Mr. BELL. Payment is to be effected in american dollars within 30 days after receipt by your joint-stock company through the Russian Bank for Foreign Economic Affairs, Moscow, of the following documents:
invoice - in quadruplicate;
full set of clean on board Bills of Lading;
Certificate of Quality;
Case per case specification or Parking List in duplicate.

Mr. IVANOV. That's clear, but now let's discuss terms of payment. Are we to make some advance payment?

Mr. BELL. Yes, certainly. We think that 15% advance payment should be made within 30 days of the effective date of the Contract.

Mr. IVANOV. Yes, that suits us. And what about total contract value? Shall it be paid in accordance with the Credit Agreement between the Bank of America and Russian Bank for Foreign Economic Affairs?

Mr. BELL. You are right. 80% of the total Contract value shall be paid in accordance with this agreement.

Mr. IVANOV. And now about 5%. We will pay this amount within 30 days after singing the Acceptance Protocol confirming the acceptance of the equipment for commercial operation.

Mr. BELL. Thank you for information.

The LEADER. Thank you. Now about delivery time. First, I'd like to give the floor to Mr. Petrov.

Mr. PETROV. Thank you. We would like the equipment to be delivered in 2 week period after the effective date of the Contract.

Mrs. MURRY. In 2 week period? I think it is rather difficult. It's better to agree to month period to be sure of the contract term fulfillment.

Mr. PETROV. We don't object. Let it be month period.

Mrs. MURRY. What about the delivery before the time stipulated in the Contract?

Mr. PETROV. But we agreed already to month period before delivery - we are to prepare our storage houses and hire new employees. So it's better for us that you deliver the equipment strictly in accordance with the Contract. We would like to emphasize that the delivery of the equipment without accessories is not allowed.

Mrs. MURRY. It goes without saying. Our company never delivers the equipment without accessories or only part of the equipment.

Exercise 5. Прочтите диалог еще раз и побеседуй те со своим партнером от имени одного из участников переговоров.

Exercise 6. Заполните пропущенные в диалоге места возможными ответами.

Dialogue 1.
A: Ladies and gentlemen1 today we are to discuss ... . The Seller is ... . The Buyer is ... . I am happy to introduce the head of ... Mr ... to you. Today we are to discuss the following ... .

Subject of the Contract

Price

Terms of Payment

Delivery terms.
B: I'd like to give you information about subject of the Contract. Our company, as the Seller, undertakes to sell to ... the following: ... ... ... .
A: What is the price for one unit it?
B: The price for one unit is ...
A: Could you give us a ... ? This price is not attractive to us. It is very high.
B: It is not so easy. We are heavy with ... We have a lot of orders from ... The quality of our ... is very high.
A: Yes, we know that. But our Russian market is ... , so you could expend your market ... .
B: We could give you only ... % discount.
A: Thank you very much, it suits us.
B: So, the total Contract value including ... ... is ... .
A: Now, let's discuss the terms of payment.
B: It should be done in ... within ... days through the bank. The bank should receive the following documents:

- ... .

- ... .

- ... .

- ... .
A: Are we to make any advance payment?
B: We think ... % payment should be done within ... days.
A: What about delivery time?
B: We'd like the equipment to be delivered within ... week period after the effective date of the Contract.
A: Oh, it suits us all right. Thank you.

Exercise 7. Побеседуйте со своим партнером о возможности заключения контракта и покупки компьютерного оборудования.

Exercise 8. Вы хотите найти партнера для покупки компьютерного оборудования. Напишите письмо-информацию в Internet, сообщите о своей компании, о желаемой покупке, возможных ценах и условиях оплаты.

Exercise 9. Переведите на русский язык основные базисные условия поставки товаров и выберите один из них, подходящий для вашей компании, объясните по-английски ваш выбор.

Ex works means that the Seller makes the goods available at his premises and the Buyer bears the full cost and risk of delivery goods to the place of destination.

FOB means "free on board". The Seller places the goods on board a ship at the port of shipment. The risk of damage or loss is transferred from the Seller to the Buyer when the goods cross the rails of the ship.

C&F means "Cost and Freight". The Seller pays the cost and freight which are necessary to deliver the goods to the place of destination, but the risk of loss is transferred from the Seller to the Buyer when the goods cross the rails of the ship.

CIF means "Cost, Insurance, and Freight". This term means the same as C&F, but with addition of providing marine insurance against risk of loss or damage during the carriage.

Exercise 10. Задание для самостоятельной работы Выберите из предложенных вариантов правильный и запишите его следующим образом: 1А или 3С.

A. is included

B. includes

C. is include
2. This company ... been working on the Russian market for 10 years.

A. has

B. have

C. has to
3. The machines ... to be sold in accordance with Specifications.

A. is

B. will

C. are
4. The terms of delivery ... be discussed at the negotiations next week.

A. is

B. will

C. are
5. How long have you ... discussing force-major circumstances?

A. being

B. be

C. been.