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Exercise 1 a) Read and translate the text about the contracts

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In the course of a year, hundreds of thousands of contracts are concluded domestically and internationally. Contract is an agreement with specific terms between two or more Parties stating what work to be done, rates to be paid, goods to be sold or bought.

Contracts can be written, oral, or implied. According to the purpose and contents, there exist several kinds of contracts. For example, employment contracts, service contracts, turnkey contracts, hire purchase contracts, etc.

Every international contract has several standard parts (clauses) which are obligatory, though some of them may be changed and supplemented. Most frequently necessary parts of the contract include the following:

- Subject of the Contract; it names the product, gives its description, may indicate the unit of measure, etc.

- Price and Total Value; it includes the total amount of money involved and the denomination of goods under the provision of the contract; the price stated in a contract may be firm (fixed) or sliding;

- Terms of Payment; it indicates method of payment, form of payment, bank details and period within which payment should be made;

- Terms of Delivery; it indicates the mode of transportation, period of delivery, sometimes it may also include start-up procedures, inspection and test;

- Guarantee Terms; it says that the goods should be in conformity with the technical documentation, specifications and conditions of the Contract otherwise the Seller undertakes to correct defects or to replace the defective elements at his own expense;

- Packing and Marking; it indicates which way the goods should be packed and what should be written on each packing container during transportation;

- Insurance; it is included in the contract in order to obtain indemnity in case of damage or loss due to fire, burglary, pilferage, damage by water, breakage or leakage, etc.

- Complaints and their Settlement; it covers a lot of cases arising from delivery, quality and quantity of goods, terms of payment and others; so it provides the settlement procedures for all possible situations;

- Arbitration; it covers the breach of contract if one of the parties fails to fulfil their obligations, and the wronged party may be able to seek damages in a court of law;

- Force Majeure; it describes a force against which you cannot act or fight; it usually includes natural disasters such as an earthquake, flood, fire, etc., as well as war, embargo, and sanctions.

- duration of the contract; it describes over what period of time the obligations arising out of it are valid;

- legal addresses of the contracting parties.

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