Unit6ContractsGettingThingsReady1ThingstoDo2ThingstoWrite3MoreThingstoDo4CareerSkillDescriptionSection1GettingThingsReadyunderstandtheformatandkeytermsofacontractdiscussthetermsofacontract(price,order,size,delivery,payment)completeacontractInthisunit,youwilllearn:nextSection1GettingThingsReadyActivity2:ReadthepassageinSection2andcompletethefollowingparagraph.Section1GettingThingsReadyThiscontractismadeonDecember12,2008betweenJohnsonCompanyandtheGuangdongHuaHaiCompany.TheSellerhas1______tosell220setscopierstotheBuyer.ThetotalFOBpriceisUSD510,000.The2______istocommencewithin30-40days.TheBuyershall3_____a100%confirmed,irrevocableletterofcreditinfavoroftheSeller.TheSellerortheBuyershallnotberesponsiblefornon-deliveryorbreachofcontractforanyreasonduetoForceMajeure.Incaseofnosettlementcanbereached,the4______shallbesubmittedtoarbitration.The5_________shalltakeplaceinChinaandbeconductedbytheForeignEconomicandTradeArbitrationCommissionofCCPIT.agreedshipmentopendisputesarbitrationbackSection2ThingstoDoThingstoDoActivity2ListenandWriteReadandThinkActivity1backstipulateabidebyinaccordancewithsubmitarisefrominfavourofissueeffectconfirmSection2ThingstoDoActivity1ListenandWrite.commencebackSection2ThingstoDoQuestion3Howtoreducerisksifyouaregoingtosignabusinesscontract?Question2Whatdoyouthinkshouldbeincludedinacontract?Question1Doyouknowanyoftheformatandkeytermsofacontract?nextSection2ReadandThinkPurchaseContractNo:20081212190Date:December12,2008ThiscontractismadeonDecember12,2008inGuangzhou,betweenJohnsonCompany(hereinafterreferredtoastheSeller)andtheGuangdongHuaHaiCompany(hereinafterreferredtoastheBuyer)wherebytheSellerhasagreedtosellandtheBuyerhasagreedtobuycopiers(hereinafterreferredtoascontractedproduct).Thequality,specifications,quantityofthecontractedproducthavebeenconfirmedbybothPartiesandthiscontractissignedwiththefollowingtermsandconditions:wSection2ReadandThink1.ContractedProduct:copiers2.Quantity:220(twohundredandtwenty)sets3.Origin:Germany4.Price:USD510000FOB5.ShipmentShipmentistocommencewithin30-40daysfromthedateofreceiptofletterofcredit6.InsuranceTobeeffectedbytheBuyer.7.PackingInnewwoodencases,freeofcharge.wSection2ReadandThink8.PaymentTheBuyershallopena100%confirmed,irrevocableletterofcreditinfavouroftheSellerwithin5calendardaysfromdateoftheagreementthroughtheissuingbank.9.ForceMajeureTheSellerortheBuyershallnotberesponsiblefornon-deliveryorbreachofcontractforanyreasonduetoForceMajeurewhichmayincludewar,strike,lockout,governmentimportorexportrestriction,severedestructionbyfireorbloodorothernaturalfactorsbeyondthecontrolofhumanbeings.10.ArbitrationAlldisputesordivergencesarisingfromtheexecutionofthecontractshallbesettledthroughfriendlydiscussionbetweenbothParties.Incaseofnosettlementcanbereached,wSection2ReadandThinkthedisputesshallbesubmittedtoarbitration.ThearbitrationshalltakeplaceinChinaandbeconductedbytheForeignEconomicandTradeArbitrationCommissionofCCPIT.11.ValidperiodThecontractwillautomaticallybecomenullandvoidshouldtheBuyerfailtoopenaletterofcreditinfavoroftheSellerwithin7(seven)daysaftersigningofthiscontract.Thiscontractismadeinduplicate;bothPartieshavereadcarefullyandagreedtoabidebyallthetermsandconditionsstipulatedtherein.ThecontractissignedbybothParties.TheSeller:JohnsonCompanyTheBuyer:GuangdongHuaHaiCompany(358words)translationbackwSection2ReadandThinkTask1Testyourproblem-solvingability.WhatisCCPIT?nextCCPIT:ChinaCouncilforthePromotionofInternationalTrade中国国际贸易促进委员会EstablishedinMay1952,ChinaCouncilforthePromotionofInternationalTrade(CCPIT)comprisesVIPS,enterprisesandorganizationsrepresentingtheeconomicandtradesectorsinChina.ItisthemostimportantandthelargestinstitutionforthepromotionofforeigntradeinChina.TheaimsoftheCCPITaretooperateandpromoteforeigntrade,touseforeigninvestment,tointroduceadvancedforeigntechnologies,toconductactivitiesofSino-foreigneconomicandtechnologicalcooperationinvariousforms,topromoteSection2ReadandThinkthedevelopmentofeconomicandtraderelationsbetweenChinaandothercountriesandregionsaroundtheworld,andtopromotethemutualunderstandingandfriendshipbetweenChinaandpeoplesandeconomicandtradecirclesofallnationsaroundtheworld,inlinewithlawandgovernmentpoliciesofthePeople’sRepublicofChina.WiththeapprovaloftheChinesegovernment,theCCPITstartedtoadoptaseparatename:ChinaChamberofInternationalCommerce(CCOIC)in1988,whichisusedsimultaneouslywiththeCCPIT.TheCCPITadmitsnewmembersfromamongenterprisesinallpartsofChinaandpromotestradethroughitsfunctionsofinformationconsultation,exhibition,legalassistance,etc.Section2ReadandThinkTask2Tellwhetherthefollowingstatementsaretrueorfalse.WriteTforTrueandFforFalse.1.Thecontractedproductsshouldbedeliveredwithin30-40daysfromthedateoftheSeller’sreceivingofletterofcredit.2.TheinsuranceofthecontractedproductsistobeeffectedbytheSeller.3.TheBuyershouldpayforthepackingofthecontractedproducts.4.TheSellershallnotberesponsiblefornon-deliveryifthecontractedproductsareseverelydestroyedbyflood.5.ThecontractwillautomaticallybecomeinvalidshouldtheBuyerfailtoopenaletter