Subject

The subject of the contract names the product for sale or purchase. It also indicates the unit of measure generally employed in foreign trade for specific commodities. Contracts for bulk cargo contain a stipulation “about” or “plus or minus… per cent”, denoting the permitted quantity tolerance.

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 standard, by sample, by description.

PRICE.

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

Words and Word Combinations:

essential clauses существенные условия контракта

to strike a deal заключить сделку

standard contract типовой контракт

part and parcel неотъемлемая часть

legal title юридическое наименование

contracting parties договаривающиеся стороны

unit of measure единица измерения

commodity товар

tolerance допустимое отклонение

stipulation условие

bulk cargo насыпной или наливной груз

in conformity with в соответствии с

by sample по образцу

to quote a price назначать цену

subject to подлежащий

firm prices твердые цены

fixed prices фиксированные цены

sliding prices скользящие цены

Questions:

1. Why are standard contracts widely used?

2. What are the essential items of a contract?

3. What information is contained in different sections of a contract?

4. How is quality determined in a contract?

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