Discussing a Contract

Mr. Petrov (P) has come to London to continue talks with Mr. Black (B). He contacts Mr. Black and at 10 o'clock he is in Mr. Black's office.

B: Good morning, Mr. Petrov.

P: Good morning, Mr. Black.

B: How are you?

P: Just fine, thank you. And how are you?

B: Very well, thank you. Are you enjoying your stay in London?

P: Yes, my stay here is very pleasant. The weather is fine.

B: We have a few problems to discuss. First comes the problem of deli­very terms. As far as I remember you prefer f.o.b. terms.

P: You're quite right.

B: These terms are acceptable to us.

P: What's your idea of an f.o.b. price?

B: It's 1 200 Pounds per unit. If you buy on f.o.b. loaded and stowed terms, then the price will be 1300 Pounds.

P: Pardon?

B: 1300 Pounds.

P: Well, I suppose f.o.b. loaded and stowed terms suit us. But will you give us a discount if we buy, say, 50 machines?

B: In this case we can give you a 10% discount.

P: So, the problem has been settled. When can you deliver the machines?

B: Well, we can dispatch the machines in two equal lots of 25 machines each. We can promise to deliver the first lot in April.

P: And can the second lot be delivered in July?

B: Yes, I think we can meet these delivery dates.

P: Fine. It seems to me we have settled all the problems and we can sign the contract now.

B: We'll do so as soon as the secretary has typed it... You'll have to wait a little.

(Mr. Black buzzes on the intercom and gives the necessary instructions to his secretary).

Mr. Petrov would you like to go to the theatre tonight? We can go and see a very good modern ballet at the Royal Opera House.

P: That's a wonderful idea. Thank you very much.

B: The performance starts at 7 p.m. I'll be in the lobby of your hotel at 6.30.

P: Well, I'll be there on time.

III. Act out a similar dialogue.

I. Read the document. Try to make up a similar one.

Contract No 58/3-1

Moscow 23 December, 19..

Messrs Brown and Co., London, England hereinafter referred to as "Sellers" on the one part, and Russian Italian Joint Venture Loco, hereinafter referred to as "Buyers" on the other part, have concluded the present Contract whereby it is agreed as follows:

1. Subject of the Contract

According to the present Contract the Sellers have sold and the Buyers have bought the goods which description, quantity and prices are indicated in Specification No 1.

The Specification is considered an integral part of the Contract.

2. Prices and Total Value of the Contract

Prices for the goods to be delivered under the present Contract arc understood franco- warehouse, Moscow, in US Dollars, including packing, marking, freight and insurance.

The total value of the Contract is USD 141,000.00 (one hundred and forty one thousand American Dollars).

3. Time of Delivery

Time of Delivery of the goods is determined and indicated in Specification No I of the present Contract. The date of the Air waybill issued in the name of the Buyers is considered to be the date of delivery. The goods shall be shipped by lots indicated in Specification No 1. Partial shipments are not allowed.

4. Quality of the goods

The quality of the goods delivered under the present Contract shall conform to the quality of the samples selected by the Buyers for the purchase.

5. Packing and Marking

Packing and marking of the goods to be delivered under the present Contract are made in accordance with the Rules for Air Transportation. Packing shall provide the full safety of the goods during transportation as well as their storage.

6. Notification of Shipment

The Sellers arc obliged to notify the Buyers of the shipment by telex or by fax not later than 2 hours after shipment indicating the following:

number of the Contract

description of goods

date and time of shipment

number of the Air waybill

quantity of goods

weight in Kgs

total value of goods

The address of the Buyers is indicated in Specification No 1.