Exercise 3 a) Read and translate the text about liabilities of sellers and buyers

The sales contract is the legally binding agreement reached by the seller and the buyer. It can be made orally or in writing. After a sales contract has been concluded, the seller and buyer have to fulfil certain liabilities (that means there are certain things they have to do).

The seller’s liabilities are:

- To deliver the goods on time and in perfect condition.

- To make sure that the buyer becomes the owner of the goods by passing the document of title to the buyer.

The buyer’s liabilities are:

- To accept delivery of the goods (this prevents him from changing his mind after the goods have been sent).

- To pay for the goods within the time agreed.

If one party doesn’t fulfil its liabilities, the contract is broken (breach of contract). In this case the injured party can claim compensation.

b) Did a breach of contract take place? Explain your choice.

1. A mail order company sent some goods to Mr.Williams. However, he refused to accept delivery of them as they had not been ordered.
2. Mr.Abraham ordered 20 televisions from a company selling electrical goods. However, he had to return one of the televisions because it didn’t work. 3. Mr.Watson refused to pay the full price for a customized machine he had ordered, because it didn’t exactly meet the specifications he had given. 4. Mr.Adams sent a free sample of wine glasses to a potential new customer. Unfortunately, the package burst open in the post and the glassed were broken. 5. Mr.Wright sent some spare parts to an airline. However, a series of staff strikes brought the airline into financial difficulties and his invoice was only paid six months later.

Exercise 4 Fill in the gaps in the draft contract, choosing from the words below. (Note: ‘widget’ is a slang term used for any type of imaginary item which is assumed to be made, bought or sold).

terms reclaim charges delivery letter of credit

arbitration freight/loading penalty substandard parties

payment specification late invoked

DRAFT CONTRACT between

WIDGETRY Ltd (hereafter known as ‘the seller’)

and MERCURY plc (hereafter known as ‘the buyer’)

The seller undertakes to supply the buyer with 120,000 super widgets, to BSI* … 999 and to pay all … and insurance ….

The terms of … and immediate payment of … charges by confirmed and irrevocable … … … are to be standard.

A … clause will be included in the contract. It will be … against the seller for late delivery or … quality; against the buyer for … payment.

In the event of non-payment, the seller shall be entitled to … the goods.

In case of a dispute between the … to the contract, the matter will be taken to independent …. All the … of the contract must be complied with by both parties.

* BSI – British Standard Institution

Exercise 5 a) Study the usage of verbs do and make.

DO - for indefinite activity, with words thing, something, nothing, anything etc He did a very strange thing. Do something! What shall we do? - when talking about work and jobs I wouldn’t like to do your job. Has Ban done his homework? It’s time to do the accounts.	MAKE - for construction, creating etc I’ve just made a cake. Let’s make a plan. - to force somebody to do something The made me repeat the whole story.
COMMON FIXED EXPRESSIONS DO: good, harm, business, one’s best, a favour, sport, exercise, one’s hair, one’s teeth, one’s duty, 50 mph MAKE: a journey, an offer, arrangements, a suggestion, a decision, an attempt, an effort, an exception, a mistake, a noise, a phone call, money, a profit, a fortune, love, peace, war, a bed, a fire, progress, alterations

b) Fill in the blanks with the verbs to make or to do.

1. The Sellers guarantee that the machines will be … in full conformity with the conditions of the order. 2. The Sellers wanted their agents … all the necessary arrangements for the transshipment of the cargo.
3. The goods happened to have been delayed for a month, something must be … to improve the situation. 4. The Sellers wrote that they … alterations in the design as requested by the Buyers. 5. It wouldn’t be fair to claim a penalty from the firm yet, they seem … their best to speed up manufacture. 6. If I were you I should … her realize that she bears full responsibility for the calculations to be exact. 7. The quicker we … the work the better, it has been suspended far too long.

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