Task 5.1

1. Task 5.1 Contract

2. Contents 1. Aims and Requirements 2. Tasks 3. Useful sentences & Homework

3. Aims and Requirements • In this chapter, students are required to grasp as follows: • 1.Know the conception and performance of contract • 2.Know how to write a letter about contract performance • 3.Master some negotiation strategies.     • 4.Grasp some words, expressions and typical sentences about contract

4. Teaching tasks • Task 1. Learn some basic knowledge of contract • Task 2 Learn some contracts and letters of contract performance, master how to write. • Task 3 Learn some negotiation strategies. • Task 4 Useful words, expressions and sentences • Task 5 Practice

5. Task 1. Learn some basic knowledge of contract • A business contract mainly includes the following terms: 1) Commodity name 2) Quality 3) Quantity 4) Unit Price 5) Total Amount 6) Payment 7) Packing 8) Delivery Time 9) Loading Port 10) Destination Port 11) Insurance 12) Force Majeure 13) Arbitration 14) Remarks

6. Payment • It is the most important procedure in the whole business, which will influence the actual benefits of both parties. There are three chief payment styles: remittance, collection and L/C, among of which, L/C payment is the most creditable and common style for a safe transaction because of the guarantee of the bank.

7. Shipment • It is the obligation for the seller to deliver the commodities according to the contract. The seller will load the goods to the vessel to get shipping documents and send it to the buyer to finish the delivery obligations. The shipment terms of a contract is very important covering shipment time, loading port, destination port, transportation mode and shipping documents

8. Insurance • It refers to the policy holder pays some insurance premium to the underwriter and gets the insurance policy from the insurance company. It may be responsible either by the seller or by the buyer. It will depend on the terms in the contract.

9. Task 2 Learn some letters of contract performance, master how to write. Establishment of L/C • Dear Sirs, • We regret to inform you that we have not received your L/C covering the Sales Confirmation No.54321 up to now. It is clearly stipulated that the relevant L/C should reach us by the end of September. • Although the time limit for the arrival of your L/C has been exceeded, we are still prepared to ship your order in view of the long-term friendly relations between us. Please do your utmost to expedite its establishment, so that we may execute the order within the prescribed time. • In order to avoid subsequent amendments, please see to it that the L/C stipulations are in exact accordance with the terms of the contract. • We look forward to receiving your favorable response at an early date. • Sincerely yours • Wang Dawei • Weifang Kite Plant

10. Writing skills • Sorry for not received the L/C • Ask for reasons • Declare troubles of shipment • Urge to establish • Actions and declaration • Response with confirmation • Contact information

11. Specimen Letters Shipment • Dear Sirs, • Referring to our order No.123 for 10,000pcs Christmas toys, we wish to remind you that the time of shipment has long been overdue. • On making the order it was stated that as this order was expected for our Christmas celebration, punctual shipment was of utmost importance. We have been involved in much trouble by your delay and as the goods are in urgent demand by our customers, we are now requiring you to do your utmost to deliver the first 5,000pcs toys under this order the earliest possible. • We should be obliged should you send us duplicates of the packing list for the shipment to be dispatched, as well as the insurance policy and the commercial invoices. This will enable us to arrange speedy passage through customs on arrival of the consignment. • Best regards • Jessica

12. Writing skills Purpose for this letter Complain for loss of late shipment Requirement of shipment Suggestions of quick delivery Wishes Contact information

13. Specimen LettersInsurance • Dear Mr. Wang, • We will send 1,000 COMPAQ 3200+ computers from New York to Shanghai, China, but don’t know what coverage we should arrange for. We wish to insure this consignment against all risks for the sum of USD80, 000.00, right? • Please let us have the insurance policy as soon as it is ready. In the meantime, please confirm that you hold the consignment covered. • Your prompt reply will be highly appreciated. • B.Rgds • David Wu • COMPAQ Corporation • E-mail: sales@compaq.com

14. Writing skills • Insurance covered party • Insurance risks • Insurance premium • Wait for insurance policy • Wishes • Contact information

15. Task 3 Learn some negotiation strategies How to Improve the Terms of Contract to Avoid Export Risks • 1. Terms of the contract required a thorough understanding • 2. Careful and complete business negotiation • 3. Scientific wording and accurate content • 4. Contract Checking

16. Task 4 Useful words, expressions and sentences Words and expressions • Contract 合同 • Sales Contract 销售合同（由卖方起草的合同） • Purchase Contract 购货合同　（由买方起草的合同） • 与合同有关的表示法有： • originals of the contract 合同正本 • copies of the contract 合同副本 a written contract 书面合同 • contract terms (or contract clause) 合同条款 contract provisions/stipulations 合同规定 • contract period (or contract term) 合同期限

17. Sentences • I still have some questions concerning our contract. • If you have any comment about these clauses, do not hesitate to make. • We’d like to clear up some points connected with the technical part of the contract. • The negotiations on the rights and obligations of the parties under contract turned out to be very successful. • We can’t agree with the alternation and amendments to the contract. • We are really glad to see you so constructive in helping settle the problems as regards the signing of the contract.

18. Task 5 Practice • Oral Practice. Make a dialogue to talk about the contract terms and conditions according to the information in the following letter. • 敬启者: • 我们已收到贵方2007年5月20日函。.函中要求我方报糖价1万公吨，装运至日本。应贵方要求，兹报价如下： • 品名：高级白砂糖 • 包装：新麻袋包装，每袋净重100公斤 • 数量：10000公吨 • 价格：成本加保险费、运费运至日本大阪港每公吨105美元 • 付款条件：通过东京银行开立以我方为受益人的即期不可撤销保兑信用证付款 • 装运期：收到信用证后一个月

19. The End • Thank you!