Exercise 16 Study the bill of exchange and answer the questions

The bill of exchange is a signed document ordering someone

to pay someone else a particular amount of money

₤ 258 due 11th May, 2010 London, 8th February, 2010 Three months after date pay to our order the sum of two hundred and fifty-eight pounds sterling only for value received*. To Messrs. A.B.White & Co. Sheffield For and on behalf of Smith Co., Ltd. G.Brown

* на оплатних засадах

1. Who is the drawer? 2. Who is the drawee and who is the bill drawn on? 3. Who signed the bill on behalf of the drawer? 4. What should the drawee do when he is presented with the bill? 5. How much should he pay? 6. At what time should he pay? 7. Who should the drawee pay the above mentioned sum to?

Exercise 17 Read and translate the dialogue ‘Discussing the price problem’.

Brown: Let’s discuss the commercial side of our transaction. We were inclined to consider the prices today.

Green: You find them attractive, don’t you?

B: Unfortunately, no. Comparing them with your competitors’ they are 5-10 % higher.

G: I’m afraid, I can’t agree with you there. Don’t you know that we have made some modifications and reduced the power consumption of our equipment?

B: I know that. However our main requirements are reliability and trouble-free performance of the equipment.

G: We can assure you that we won’t let you down.

B: It’s fine. But as we are in close touch with the market now we are informed that other companies can quote lower prices.

G: Right, but business is business. What are your reasons for a discount?

B: I’ve already mentioned your competitors’ prices. Besides, your price must depend on the amount of the Contract.

G: Well, if you increase your order to … dollars we will be able to give you a 2 % discount.

B: It’s better, but we expected at least a 4 % discount.

G: Let us make some calculations. 3% and no more. Even this concession leaves only a very small profit for us.

B: I’m afraid that at this time we can’t raise the sum of the Contract. Would you take risks and sign our first contract at this price.

G: Well, that’s reasonable. We always give our partners a square deal. But this price is final. What currency can you pay: in sterling or dollars?

B: We insist on dollars.

G: No objections. We could meet tomorrow after you look through all papers closely. What time could you come here again?

B: I suppose I can make it only after two.

G: Than see you at 3. Goodbye.