B. Read the text. When striking a deal, contract forms are widely used

When striking a deal, contract forms are widely used. Standard contracts are not a must as some articles may be altered and supplemented, eliminated and replaced, but still normally they include the following parts: legal title of the contracting Parties, Subject of a Contract, Price and Total Amount of a Contract, Delivery and Payment Terms.

Introduction part of a Contract contains the legal names of the contracting Parties, personal names and official positions of the representatives from the parties.

Subject of Contract names the product for sale or purchase. It also indicates the unit of measure for specific commodities.

Quality. The Quality of machines and equipment is to be in conformity with the technical specification of the Contract. The Quality of raw materials and foodstuffs is determined, as a rule, by standards, by sample or by description.

Price. The price in a contract may be firm, fixed or sliding. Firm price. Firm price are not subject to change in the course of the fulfillment of the contract. Fixed price. It is the price governing in the market on the day of the delivery or for a given period. Sliding prices. These prices are quoted for machinery and equipment which require a long delivery.

Payment. A cheque is a written order to a bank given and sighned by someone who has money deposited there to pay a certain amount mentioned in the cheque to a person named on it.

In the place of the cheque system Banks provide an international system of Bank Transfers. The Seller gives TT (telegraph transfer) or mail remittance terms to a Buyer when he is a trusted customer or agent. It involves risk as the Seller ships goods without any assurance of getting payment.

Like a cheque, a draft is an order to pay. It is made out by an exporter and presented to the importer. It is also called a bill of exchange. A sight draft is a bill which is paid immediately on presentation. A bill to be paid at a later date is called a term draft. There are 30-day, 60-, 90- and 120-day drafts.

A very useful method is to attach the shipping documents (the Bill of Lading, the Insurance Policy and the Invoice) to the Draft and hand them to the Bank for collection. This method of payment does not involve risk when drafts are presented against L/C. With a letter of credit, at least when it is confirmed and irrevocable, the payment is guaranteed.