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DISCUSSING A CONTRACT

Mr. Rogers: Good afternoon, Mr. Bunin. I am happy to come back from the Exhibition.

Mr. Bunin: Didn't you enjoy it, Mr. Rogers?

Mr. Rogers: Not really. It was tiring. I don't like traveling, you know.

Mr. Bunin: Let's discuss the commercial side of our transaction. We were inclined to

consider the prices today. Mr. Rogers: You find them attractive, don't you? Mr. Bunin: Unfortunately, no. Comparing them with those of your competitors, they are

5 - 10 % higher. Mr. Rogers: I'm afraid I can't agree with you there. Don't you know that we've made

some modifications and reduced the power consumption of our equipment? Mr. Bunin: Sure, I know that, but you can't say that the power consumption of your

equipment is very low. However, our main requirements are reliability and

trouble-free performance of the equipment. It involves the problem of Test

and Guarantee. Mr. Rogers: We can assure you, Mr. Bunin, that we won't let you down. On our part, we

expect the Release Note for Shipment to be signed immediately after the

tests are carried out and the Test Report is submitted Mr. Bunin: I see, but as we are in close touch with the market now we are informed that

other companies can quote lower prices. We expect understanding of our

good will and of the fact that our company is rather new and intends to have

long-term relations with yours. Mr. Rogers: Right, but business is business. What are your reasons for the discount? Mr. Bunin: I've already mentioned your competitors' prices. Besides your price must

depend on the amount of the Contract. Mr. Rogers: Well, if you increase your order to €500 000 we will be able to give you a 2 % discount.

Mr Bunin: It's better, but we expected at least a 4 % discount.

Mr. Rogers: Let us make some calculations.... 3 % and no more, Mr. Bunin. Even this concession leaves only a very small profit for us. This price is final. CIF Odessa, isn't it? Now the terms of payment. We accept: Cash, Letter of Credit, Telex Transfer, Certified Check.

Mr. Bunin: Unfortunately, cash is out of question. It isn't allowed in our country for for­eign trade. The Letter of Credit appears to be the most acceptable.

Mr. Rogers: All right. What currency can you pay in: Euro or dollars? We insist on Euro.

Mr. Bunin: It's possible. But we need a Bill of Lading, an Invoice, a Packing List, a Cer­tificate of Origin, a Certificate of Quality and an Insurance Policy to be faxed within 2 days after the cargo is ready for shipment.

Mr. Rogers: Good. We could meet tomorrow. What time could you come here again Mr. Bunin?

Mr. Bunin: I suppose I can make it only after two.

Mr. Rogers: Then see you at 3. Good buy.

III. Post reading stage:

4. Match theequivalents in two columns:

1. transaction вимога

2.competitor__________________________готівка____________________

3.requirement_________________________гарантія___________________

4.Test and Guarantee___________________завірений чек_______________

5.discount____________________________страховий поліс ___________

6.Letter of Credit______________________операція___________________1

7.Certified Check______________________вантаж____________________

8.Cash______________________________конкурент_________________

9.Certificate of Quality_________________знижка____________________

10.Insurance Policy_____________________акредитив__________________I

11.cargo______________________________сертифікат якості___________

5. Answer to thequestions while readingthe dialogue:

1. What was the subject of negotiations between Mr. Bunin and Mr. Rogers?

2. Who was the Seller?

3. Who was the Buyer?

4. What were the reasons for the discount asked by Mr. Bunin?

5. Did the parties reach agreement as to the discount?

6. What amount of discount did Mr. Bunin insist on?

7. What did the parties agree as to the terms of contract?

• Terms of payment;

• Terms of delivery;

• Documents required;

8. How do you think were these negotiations successful?

9. Who was the most successful negotiator? Why do you think so?

6. Complete the following statements:

1.Let's discuss the commercial side of_____________________________.

2. We were inclined_______________________________________today.

3. Comparing prices with those of your____________they are 5 - 10 % higher.

4. We can assure you, Mr. Bunin, that_______________________________.

5.1 see, but as we are in close touch with the market now we are informed that other companies____________________________________.

6. We expect understanding of________________________and of the fact that our

company is rather new and intends to have_________________________.

7. Right, but business is_______________. What are your___________for the

discount?

8. Well, if you__________________________to €500 000 we will be able to give

you a 2 %_____________________.

9. The Letter of Credit appears to be the most__________________________.

7. Add question-tags to the following statements:

1. Mr. Black came to London on business,...?

2. Both parties agreed to a 5 % discount,...?

3. The Buyers didn't receive the goods at the agreed time, ...?

4. The manager made a correct decision, ... ?

5. Last year your customs' tariffs were too high,...?

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