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Contracts in international business transactions



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What is a Contract in general?

A Contract is an agreement of buy-back transaction between the Buyer and the Seller. In foreign trade transactions a Contract is drawn up to give legal expressions to the intention of the partners and to ensure that the obligations contained in the Contract will be fulfilled.

According to the purpose and contents Contracts can cover goods, services, licenses, patents, technology and know-how.

In accordance with a Contract the Seller has sold and the Buyer has bought goods on some kinds of terms from the ports agreed upon at the Seller or the Buyer’s option. Grades, price and quantity are usually stated in the Contract.

The price for goods is understood to be per meter, kg, metric ton, box, case or per other units of goods.

As a rule, a Contract is drawn up in two languages: in the languages of the Seller and of the Buyer. However, there are some difficulties within this process. It concerns the “rare” languages. In this situation a Contract will be signed in English and in the “non-rare” language.

Usually a Contract is drawn up and then signed in duplicate for each partner. In other words, the Seller and the Buyer issue 4 copies of a Contract.

Contracts of sale include turnkey contracts and large-scale contracts on a compensation basis.

 

Ознакомьтесь с содержанием текста и выполните задание к нему.

1. Ответьте на вопрос: «What is a Contract in general?», охарактеризовав этот вид документа.

2. Найдите в тексте оборот речи, который всегда используется в контрактах, касающихся купли-продажи, выпишите его.

3. How many languages is a Contract drawn up in?

4. How many copies do the Seller and the Buyer issue?

 


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