Download CONTRACT

Unit 9 Sales Confirmation and Purchase
Contract
• Teaching Objectives：
•  Knowledge Requirements:
• 1 To enhance students’ awareness of basic knowledge
of contract.
• 2 To enable students to become familiar with the main
contents of sales confirmation and purchase contract.
•  Competence Requirements:
• 1 To write effective letters on sending sales
confirmation and purchase contract..
• 2 To fill in the sales confirmation and purchase
contract.
Part One Brief Introduction
•
A contract is a binding agreement
between two or more parties. Contracts
are formed through negotiations between
the buyer and the seller. Once a deal is
made, traders may sign two copies of
contract face to face. Or the seller may
send two copies signed by him to the
buyer for counter-signature and the buyer
should return one copy to the seller for file.
•
There are no specific requirements
about the forms of contract in international
trade. The commonly used forms are:
Contract, Confirmation, Agreement, Order,
Indent, Memorandum, etc. The first two
are more commonly used in Chinese
foreign trade enterprises which generally
have their own printed set format of
contract or confirmation.
• If the exchange of letters or faxes or
telexes eventually leads to the conclusion
of business, both parties should confirm
the deal. Such letters are usually
accompanied by a Purchase Confirmation/
Purchase
Contract
or
a
Sales
Confirmation/Contract (In international
trade, a sales confirmation is a document
regarded as a contract.). A letter
confirming an order or a sale should be
very simple as the relative Confirmation or
Contract or is almost always enclosed.
• No matter what forms of contract we are dealing with,
there are certain key provisions that every contract
should contain to avoid ambiguity and possible future
conflicts. Usually a contract covers the following:
• 1. The name and address of the seller and the buyer.
• 2. The willingness and guarantee of both sides to carry
out the contract.
• 3. The description of the goods, quantity, packing, price,
terms of payment, shipment, port of shipment and
destination.
• 4. General terms and conditions concerning insurance,
commodity inspection, claim, arbitration, and force
majeure, remarks and signature.
Part Two Sample Letters
• Sample 1
• Sending a Sales Confirmation
• Dear Sirs,
• Thank you for your order No.86-AM007. Enclosed is our Sales
Confirmation No. 86-AM007CB in duplicate, of which one copy
is to be countersigned and returned for our file.
• We wish to point out that the stipulations in the relevant credit
should strictly conform to the terms stated in our sales
confirmation thus avoiding subsequent amendments
• We hope you can establish the covering L/C in April 2003. You
may rest assured that we shall make up your order upon receipt
of the credit and effect the shipment within the time you
requested.
• Thank you for your cooperation and we are looking forward to
your further orders.
• Yours sincerely,
• Sample 2
• A Reply to a Sales Confirmation
• Dear Sirs,
•
We have duly received your Sales
Confirmation No. 86-AM007CB in duplicate. As
requested, we return herewith one copy
completed with our counter-signature. Thanks to
our mutual efforts, we were able to bridge the
gap and put the deal through.
•
The relative L/C has already been
established with the Bank of China, New York, in
your favor, which we believe will reach you soon.
•
We await your advice of shipment, or the
earliest time you propose to ship, by return mail.
•
Yours truly,
• xxx
• Sample 3
• Contract Amendment
• Dear Sirs,
• Your letter about contract terms dated May 6 has been received.
All the other terms are accepted except arbitration terms.
• We think that it is better to submit our arbitration case to an
organization in a third country if any disputes arise. Of course, it
is not necessary to submit a case to arbitration as long as our
two parties can discuss the matter in friendly manners. But it is
better to make the stipulations complete before we sign the
contract.
• We look forward to your favorable reply.
• Yours faithfully,
• xxxx
• Sample 4
• Termination of a Contract
• Dear Sirs,
• We are writing to you about the Sales Contract No.56.
• Flood has happened in our country and our factory was
destroyed completely. We are not in a position to make delivery
of the goods under the contract. Flood is force majeure, so we
have to terminate the contract.
• Certificates that attest the event will be sent to you by cable at
once.
• We are awaiting your prompt reply.
• Yours truly,
• xxxx
• Sample 5
• Cancellation of a Contract
• Dear Sirs,
• We would like to draw your attention to the Sales Contract
No.326, which states that shipment should be effected during
May and L/C should reach us by the end of April. However, we
have not yet received your L/C after our repeatedly urging the
establishment of L/C.
• We regret to tell you that we have to cancel this contract as a
result of your default and reserve the right to lodge a claim for
the loss sustained.
• Yours truly,
• xxxx
Summary
• Contract plays a key role in the conclusion
of business for both parties. Therefore,
learning to writing effective and
appropriate letters concerning a contract
i.e. sending / amending / terminating /
canceling a contract is of great help during
the process of business. Meanwhile, filling
in the contract correctly is also rather
important.
Exercise
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Exercise I
Exercise II
Exercise III
Exercise
• I. Directions: fill in the appropriate
words or expressions listed in the box
and put the letter into Chinese.
for your good cooperation,
duly countersigned,
for your file,
repeat order,
in your favor,
terms and conditions
in duplicate,
prove satisfactory,
in the meantime,
enclosing,
establish with,
• Dear Sirs,
• Thank you for your letter of March 6 _______ S/C No.567
________ one copy of which we have _________ and are
returning one copy ___________.
• ____________ we have established the necessary L/C
__________. If the first shipment of 80 tons should
___________, we would most likely send you ___________
for another 50 tons.
• We thank you again ____________ .
• Yours faithfully,
• xxxx
• KEY:
• enclosing, in duplicate, duly countersigned,
for your file, in the mean time , in your
favor, prove satisfactory, repeat order, for
your cooperation
II. Directions: Translate the following sentences
into English.
• 1. 如果你们认为没有问题，我们希望你们签回销售合同的副本一
份备查。
• If you find everything proper, please sign and return the
duplicate of the Sales Contract for our file soon.
• 2. 按你们的要求，我们随函寄去第321号售货确认书一式三份请
查收。
We are sending herewith our Sales Confirmation NO.321 in
triplicate at your request.
• 3. 我们同意按以下条款售出下列产品。
• We agree to sell the under mentioned goods on the basis of the
following stipulations.
• 4. 我们已于二十八日通过纽约的中国银行给你方开出682号信用
证。
We opened Letter of Credit No. 682 through the Bank of China,
New York, on the 28th.
• 5. 请尽可放心，该货的装运，不会再有延迟。
Please be assured that there will be no further delay in
III. Directions: Fill in the sales contract in
English with the particulars given below.
合同号码：46—23510
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卖 方：浙江省轻工业进出口公司
买 方：圣杰克进出口公司，澳大利亚 悉尼
商品名称：“蝴蝶”牌缝纫机
规 格：2561型
数 量：1000台
单 价：每台成本加保险费加运费悉尼100美元
总 金 额：100 000美元
包 装：用适合出口的木箱包装
• 保 险：按百分之百CIF值加百分之十保一
切险及战争险
• 装 运 港：中国 广州
• 目 的 港：澳大利亚 悉尼
• 唛 头：正方形内刷CNN
• 交 货 期：2005年8月31日前
• 支付条款： 以保兑的不可撤销的信用证凭
即期汇票付款
• 签约地点与日期：2005年1月6日于宁波
• Sales Contract
• No.________
• Seller:
• Buyer:
• This contract is made by and between the buyers and the sellers,
whereby the buyers agree to buy and sellers agree to sell the undermentioned commodity according to the terms and conditions
stipulated below:
• Commodity:
• Specifications:
• Quantity:
• Unit price:
• Total value:
• Packing:
• Shipping mark:
• Insurance:
• Time of shipment:
• Port of shipment:
• Port of destination:
• Terms of payment:
• Done and signed in___________ on this ______ day of ________,
2005.
• KEY:
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CONTRACT
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NO: 46—23510
Buyers: Saint. Jack Imp. & Exp. Corporation
Sellers: Zhejiang Provincial Light Industrial Products Imp/ Exp Corp.
Commodity: “Butterfly” Brand Sewing Machine
Specifications: Model 2561
Quantity: 1000 sets
Unit Price: US$ 100 per set CIF Sydney
Total Value: US $ 100 000 (Say US Dollars One Hundred Thousand
Only)
Packing: To be packed in wooden cases, suitable for export
Shipping Mark: CNN in square
Insurance: Covering marine ALL RISKS and WAR RISK for 100% of
CIF value plus 10%
Time of shipment: Before December 31, 2005
Port of shipment: Guangzhou, China
Port of destination: Sydney, Australia
Terms of Payment: By confirmed irrevocable letter of credit payable
by draft at sight.
Done and signed in Ningbo on this 6th day of January, 2005