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Unit 10 Orders and ContractUnit GoalsStarting-upRead the following letter from a buyer about confirming a transaction and complete the order.Dear Max,After our recent exchange of letters, we confirm having purchased from you 1000 yards of printed fabric of Style No. 266 on CIF Qingdao at USD 5.65 per yard for shipment during October. We’d like you to pack about 100 yards in Hessian bale and 500 yards to a wooden case. Regarding insurance, please cover the goods against All Risks for invoice amount plus 10%. What’s more, payment is to be made by irrevocable L/C payable by 30 days’ draft.We are pleased to have transacted this first business with your corporation and look forward to further expansion of trade to our mutual benefit.Best Regards,ORDERMessrs Wilson &Co. Ltd. NO. DT536288 Sutton St., Date: August 3, 2017 San Francisco, CaliforniaUSAPlease supplyQuantity Description Style No. Unit Price Total Amount1. 2. 3. 4.5. 6.Total: 7.Packing: 8.Payment: 9.Insurance: 10.Initial ListeningBefore listening, please learn the following trade terms by heart. Trade TermsNow, please complete the following tasks.T T a a s s k k11You will hear some phrases covering placing an order and signing a contract. Repeat for the first time you hear. Then listen again andwrite your answers down.1._________________2.________________3._________________4.________________5._________________6.________________7._________________ 8.________________9._________________ 10.________________T T a a s s k k22You will hear eight sentences. When you hear the first time, repeat the sentences and pay attention to the stresses and tones. Then listen again and fill in the missing words.1.We . We are actually making this an exceptionwith an eye to future business.2.Before preparing the contract, shall we again tosee if ther e’s any misunderstanding or if there is anything missing?.3.We feel regretful that we can no longer as theproduction has been discontinued since last September.4.At present, we can’t owing to the uncertainavailability of raw materials.5.I’m very glad we have .6.We’ve settled the terms for the contract in general, and we are goingto .7.There are both in Chinese and English. .8.I think the success of this first deal will .T T a a s s k k33You will hear 5 short conversations. At the end of each conversation, one question will be asked. Both the dialogue and question will be spoken only once. Mark the best answer for each question.1. A. The price will be set in three months.B. The price is subject to the ruling market.C. The price could be set every three months.D. Either B or C2. A. They will sign the contract.B. They will follow up the contract.C. They will check the terms and conditions in the contractD. They will execute the order.3. A. The man would like to do business on CIF basis.B. The man would like to deliver the goods by air.C. The man agrees with the woman.D. The man thinks the freight needs to be lower by air.4. A. It doesn’t include all the terms and conditions.B. Both the man and woman agree on the contractC. The man thinks there are some problems with the contract.D. The man thinks they should correct some terms in the contract.5. A. She has no idea about the question.B. She will think about the future challenges.C. She doesn’t think there are more challenges than opportunities.D. She thinks they should talk about long-term agreement.Oral DiscussionBefore discussion, you are given the following advices. Professional Advices1. The key points examined in an order:Highlight Order No. for the future communicationCheck vendor’s name or codeMake sure that the description of goods is rightConfirm that the price terms comply with negotiationExamine transportation mode, ports, partial shipments and transshipment, and delivery date etc.Review quantity, payment terms and packing methods2. Notes for signing a contract:(1) Generally the contract is signed in duplicate.(2) The version of contract is showed both in English and Chinese.(3)Both parties sign their names at the bottom of the contract.Now, please complete the following tasksT T a a s s k k11Work in pairs. Discuss what arbitration is?T T a a s s k k22Work in pairs. Discuss the clauses stipulated in a contract.T T a a s s k k33Discuss the following topic.Imagine you are a seller to negotiate the terms of a contract with a buyer.Intensive ListeningLearn the following by heart before listening.D D i i a a l l o o g g u u e e11..1.Listen to the dialogue and decide whether the following statementsare true or false. Write “T” for true and “F” for false.1.Mr. Smith has placed an order with Mr. Wang. ( )2.The final unit price agreed upon is USD5.35/piece. ( )3.The port of destination is Lagos. ( )4.The L/C must reach the seller 30 days before shipment. ( )5.The goods should be covered at 130% of the invoice value. ( )2.Listen to the dialogue again and complete sentences according tothe contents in the video.1.The eight layers of petal are to be replaced , in which way, theunit price is .2.Delivery of the goods is no later than .3.We require to pack in one poly bagand .4.Payment by L/C at sight must reach us .5.We will insure the goods against , Fresh Water Rain Damage,Risk of Clash and Breakage.3.Take notes for negotiation on the details of the orderCommodityQuality _______________________Quantity _______________________Delivery ______________________Payment TermsInsuranceD D i i a a l l o o g g u u e e22..Listen to the dialogue and choose the best answer to each of the following questions.1.Does the contract need to be revised?A.Yes.B. No, it is all correct.C. Not mention.2.What clause should be added in the contract?A.Force MajeureB. Inspection ClauseC. Arbitration3.Which institution should the disputes be submitted to?A.Entry-Exit Inspection and Quarantine BureauB.Chinese International Trade Arbitration Commission.C.People’s Insurance Company of Ch ina4.At the end, have they signed the contract?A.Yes.B. No.C. Not mention5.What do you think they will do after signing the contract?A.The buyer will place an order.B.The seller will deliver the goods to the port of shipment.C.The contract will be followed up.Oral presentationIn this part, please make oral presentations after reading the following tasks. You are given the functional sentences to help you. Functional Sentences1. We’ll prepare the contract according to the results of our discussion. T o avoid any possible mistakes, may I repeat what we have agreed upon?2. Before we sign the contract, let’s check the terms and conditions of thecontract once more so as to avoid any disputes over some minor details in the future.3. Shall we go over the terms and conditions of the contract to see if we agreeon all the particulars?4. We have reached an agreement on the terms for the contract in general andwe are going to prepare the contract according to what we have agreed upon.But to ensure that no mistakes are made, shall we repeat all the terms we have discussed?5. We’ve settled the terms for the contract in general, and we are going toprepare the corresponding contract accordingly. Could you repeat the terms so that no mistakes are made?6.Let’s go over the contract and see if everything is all right.7.We’ve made a draft of the contract according to what we have discussed. Please go through the contract to see if there’s anything that sound be revised/modified/rewritten.8.We’ll have the contrac t sent to your hotel for you to go through.9.Here is the contract we have prepared. Please take a look at it before sign.10.Here is the sales contract we drafted according to the results of our negotiation. Please have a look at the contract to see if there’s anything missing.11.Everything seems to be satisfactory except that one point is missing.12.May I suggest that you put down in the contract “Shipment is to be made in2 equal lots during May and June respectively, 2017”.13.I think one more provision should be added regarding commodity inspection.14.Let’s congratulate ourselves that this transaction has been brought to asuccessful conclusion.15.I’m glad that our negotiation has come to a successful conclusion.16.I think the success of this first deal will pave the way for future business.17. We think your contract needs some modification.18. The contract specifies that the goods should be shipped within 2 months.19. We think your contract needs some modification.20. We’ll place an order with you on the terms and conditions agreed upon byus.T T a a s s k k11Retell the passage of Dialogue 1 with the words and useful sentences used in the dialogue.T T a a s s k k22Work in pairs. Student A plays the role of seller and Student B plays the role of buyer. Make up a dialogue according to the following situation. The draft of the contract is ready. Ms. Li asked Mr. Rush to check the particulars to see if there is anything to be amended. Mr. Rush found that time of shipment was not exact and told her the statemen t “The seller should notify the buyer by fax after the loading is completed or shall be responsible for the losses incurred.” So they are having a discussion on this issue. Background InputOrder refers to an oral or written request to supply a specified quantity of goods. It may be the result of an offer or a counter-offer with positive acceptance. It may be given by letter, telegram, fax, e-mail, or even orally at a meeting. But order letters are a common form of correspondence for obtaining goods and services.When the buyer sends the seller an order for some goods, he also sends him a confirmation of purchase in duplicate to be countersigned, with one copy to be returned for filing. And after receiving the seller’s confirmation, the buyer opens a letter of credit, whereas the seller gets the goods ready for shipment after he receives the letter of credit.A contract is an agreement between two or more parties that is enforceable in a court of law. In international trade, a Sales Contract comes into existence through exchange of correspondences between the exporter and importer.When, in the course of business negotiation, an offer with engagement or a counter-offer of this kind is accepted, the transaction is completed and contractual relationship between the offeror and the offeree is concluded. However, in keeping with the regular practice in international trade, a written contract or confirmation is usually signed to bind both the seller and the buyer. When all the terms and conditions have been negotiated, it is necessary to sum up and sort out all the terms agreed in the form of a written document, i.e., the Sales Contract or Sales Confirmation. A formal contract or confirmation should be prepared in duplicate. each copy should be signed by both parties, and each party should keep a copy with countersignature. Some of the contracts or confirmations commonly used in foreign trade are available in printed form, therefore, only the date, price of commodities, name of parties, and similar particulars need to be filled in.The terms under business negotiation which are stipulated in the sales contract always include the description of the goods, quality and specification, quantity, packing, unit price, amount, payment, date of delivery, shipping, insurance, inspection, claim and arbitration clauses, etc.In export trade, a Sales Contract is a legal document made by and entered into between a seller and a buyer on the basis of their offer and acceptance. In the contract the right and obligation of both parties are definitely stipulated. The contract is binding on both of them. In case any dispute occurs, people can find out who should be held responsible for the breach of the agreed terms in the light of the signed written contract.。
