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Match the words and phrasesComprehention test 1. An enquiry is a….. a) reply to a business letter: b) request for information; c) legal agreement 2. An enquiry is sent to the …. a) Chamber of Commerce; b) Arbitration; c) Maritime Organization 3. If you are looking for partners abroad you can write to…. a) Embassy; b) Local Bank; c) Customs 4. The purpose of a general enquiry is to … a) offer the name of a Supplier: b) obtain the names and addresses of a supplier; c) place an order. 5. Specific enquiry is sent when you want to know… a) name of a Supplier; b) place of manufacturing; c) more details about the goods to be supplied. 6. An enquiry is a way of obtaining … a) offers; b)advertisement; c) orders 7. Invitation to tender is … in a newspaper to obtain an offer. a) an article; b) a picture; c) an advertisement 8. … makes an offer. a) A Buyer; b) A Customer; c) A Seller 9. …. places an order with a Supplier. a) A Buyer; b) A Customer; c) A Seller 10. ….is made in answer to an enquiry. a) order; b) solicited offer; c) unsolicited offer 11. …. is sent on the Seller’s own initiative. a) firm offer; b) solicited offer; c) unsolicited offer 12. The Seller must provide the goods at the prices and terms given in his offer under…. a) firm offer; b) firm order; c) solicited offer 13. …. is an offer without obligations. a) firm offer; b) unsolicited offer; c) non-binding offer 14. If the Buyer is satisfied with the terms of the Seller’s offer he…. a) sends an enquiry; b) places an order; c) concludes a sales contract 15. If the customer orders a small quantity of goods to test the quality he places …. a) a trial order; b) an initial order; c) a firm order 16. The first order placed with a company is called…. a) a trial order; b) an initial order; c) a firm order 17. If the customer orders goods in large quantities he places….. a) a trial order; b) a bulk order; c) a firm order 18. The legally binding agreement reached by the Seller and the Buyer is the …. a) Charter Party; b) Contract of Employment; c) Sales Contract
Translate into English the following sentences: These phrases will help you: We would like to know/to find out…. It is essential… We are looking for…. We are interested in…. To recommend a company To deliver the goods…. A steady demand….. A good price… Wholesalers Sales Please quote…. To intend…. Reference Heavy weights handling To be consigned to…
Topic 2: Terms of delivery (Incoterms) Vocabulary: Passing risk – переход риска To send the goods – отправлять груз To bear the costs – нести расходы To avoid disagreements – избегать разногласий Obligation - обязательство To cover all costs– покрыть все расходы Title – право собственности FAS – франко вдоль борта FOB – франко борт CFR – стоимость и фрахт CIF – стоимость, страховка и фрахт
When the goods are sent from a Seller to a Buyer each party has to know exactly which of the costs and risks of transportation he has to bear. In order to avoid disagreements, the Sales Contract usually stipulates one of the thirteen terms of delivery drawn up by the Chamber of Commerce. These are known as Incoterms (International Commercial Terms). They determine which party is to bear the various costs involved in transportation and the point at which the risks are to pass from the Seller to the Buyer. It is known as the passing risk. So, Incoterms are used to divide transaction costs and responsibilities between buyer and seller. Under Incoterms 2010 FAS, FOB, CFR, CIF are used for sea and inland waterways. · FAS Free Alongside Ship “Free Alongside Ship” means that the seller is relieved from responsibility for the goods when they are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onwards.
· FOB Free On Board “Free On Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.
· CFR Cost and Freight “Cost and Freight” means that the seller delivers the goods on board the vessel. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must pay the costs and freight necessary to bring the goods to the named port of destination.
· CIF Cost, Insurance and Freight “Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must pay the costs and freight necessary to bring the goods to the named port of destination.
The seller also pays insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.
Remark: In 2010 Incoterms were amended. There are 2 changes for the FOB incoterm: the seller’s responsibility extends until the goods are “on board the vessel” rather than “past the ship rail” and the seller must arrange for packing the goods rather than provide the packing. Match the words and phrases:
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