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Unit 10 Orders and Contact
Starting-up
Read the following letter from a buyer about confirming a transaction and complete the order.
1. 1000 yards 2. Printed fabric 3. Style No. 266 4. CIF Qingdao 5. USD5.65/yard 6. USD5650.00 7. Say US Dollars five thousand six hundred and fifty only 8. 100 yards in Hessian bale and 500 yards to a wooden case
9. by irrevocable L/C at 30 days 10. For 110% of invoice value All Risks
Initial Listening
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1. secure a large order 2. conclude a transaction 3.check up all the points 4. go over the general terms 5.original of the contract 6.abide by the contract 7.expiration of contract 8.more or less clause 9.come into effect 10.draw up a contract
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1. We accept the counter-bid. We are actually making this an exception with an eye to future
business.
2. Before preparing the contract, shall we go over the other terms and conditions again to see if there’s any misunderstanding or if there is anything missing?.
3. We feel regretful that we can no longer supply the goods you order as the production has been discontinued since last September.
4. At present, we can’t undertake to entertain your order owing to the uncertain availability of raw materials.
5. I’m very glad we have brought this transaction to a successful conclusion. 6. We’ve settled the terms for the contract in general, and we are going to prepare the corresponding contract accordingly. 7. There are two of the originals of the contract both in Chinese and English. . 8. I think the success of this first deal will pave the way for future business.
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1. W: What about the price?
M:We could meet every three months or so to set the price according to the prevailing world market price.
Q: What does the man mean?
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 C
2. M: Let me check all the terms listed in the contract and see if there is anything not in
conformity with the terms we agreed on.
W: Yes, you are right. We both should make everything clear so that we can perform our promises written down in the contract smoothly. Q: What will they do next? A. They will sign the contract.
B. They will follow up the contract.
C. They will check the terms and conditions in the contract D. They will execute the order.
3. W: I’ve been looking into the question of having the goods sent by air. It’s quick and the
goods are less liable to damage than by sea or rail.
M: There’s only one thing there. Freight costs are higher by air, and if we operate on CIF terms as we’ve already previously agreed, this might mean a substantial increase in our expenses.
Q: What can you get from the conversation?
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. M: Yes, including a description of the furniture you want to purchase this time, the total
amount of your order, the price for each unit, mode of payment, packaging, shipping time, insurance and compensation, claim and arbitration, and rights and duties for both sides. Are all the terms here satisfactory?
W: I’ll need a few minutes to check over my notes again on every detail. Yes, I don’t think there’s any problem with the contract. Q: What about the contract?
A. It doesn’t include all the terms and conditions. B. Both the man and woman agree on the contract C. The man think there are some problems with the contract. D. The man think they should correct some terms in the contract. 5. M: What do you have in mind?
W: Well, we’ll face more and more challenges as well as opportunities. Now China has joined the WTO, so I think it’s necessary for us to make some long-term business arrangements. Q: What does the woman mean?
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.
Intensive Listening
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1. Listen to the dialogue and decide whether the following statements
are true or false. Write “T” for true and “F” for false. 1. Mr. Smith has placed an order with Mr. Wang. ( T ) 2. The final unit price agreed upon is USD5.35/piece. ( F ) 3. The port of destination is Lagos. ( F )
4. The L/C must reach the seller 30 days before shipment. ( F ) 5. The goods should be covered at 130% of the invoice value. ( T )
2. Listen to the dialogue again and complete sentences according to
the contents in the dialogue.
1. The eight layers of petal are to be replaced by five ones, in which way, the unit price is USD 5.35/pc. 2. Delivery of the goods is no later than Nov. 20, 2017 from Tianjin to LA. 3. We require to pack one piece with hanger in one poly bag and 24 pieces in one carton. 4. Payment by L/C at sight must reach us 40 days before the date of shipment. 5. We will insure the goods against WPA and TPND, Fresh Water Rain Damage, Risk of Clash and Breakage.
3. Take notes for negotiation on the details of the order
Commodity Hoodies Quality 100% cotton interlock Quantity 2000 pieces Delivery No later than Nov. 20, 2017 Payment Terms L/C at sight Insurance to be covered by buyer against WPA and TPND, Fresh Water Rain Damage, Risk of Clash and Breakage for 130% of the invoice value Tape Script: Dialogue 1
Wang: Hi, Shawn. I am so glad to have received your order. But after checking it, I find there are
some discrepancies between the order and our previous negotiation.
Smith: Oh, really? All right, let’s go over the terms and conditions we negotiated. Wang: No problems. The fabric of the hoodie is 100% cotton interlock. Smith: Right. And the quantity we need in this order is 2000 pieces.
Wang: Yes. But there is something wrong with the unit price. Do you remember we have changed
the embroidery on the chest? The eight layers of petal are to be replaced by five ones, in which way, the unit price is USD 5.35/pc CIF LA.