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Read and translate the dialogue.

DISCUSSING A CONTRACT

The export department of Goldman & Co. sent their offer of compressors. Mr. Bunin came back from Edinburgh, he and Mr. Zotov considered the prices, the ter of payment and delivery and the technical information of the offer. They found that the compressors were the latest design. So Bunin decided to meet Mr. Lipman again to disci the offer.

Bunin: Good afternoon, Mr. Lipman.

Lipman: Good afternoon, Mr. Bunin. Will you take a seat? Have a cigarette, please.

Bunin: Thank you.

Lipman: Did you enjoy your trip to Edinburgh?

Bunin: Yes, it was pleasant, indeed. I also had a good opportunity to contact business!

men of different British companies.

Lipman: I see. Now, Mr. Bunin, what do you say to your offer?

Bunin: On the whole your terms and conditions are acceptable to us. But I'm afraid

your prices are not quite competitive. They are somewhat higher then the

prices of other firms. Could you reduce your price by 7 per cent?

Lipman: I say, Mr. Bunin, we've sold our compressors at the price of $2000 each. They

are the best on the world market at this price. However, if you increase your

order, we'll give you a discount of 5 per cent.

Bunin: I believe we can buy 15 more compressors.

Lipman: Fine. That will settle the price problem.

Bunin: Quite so. Now there is another point, Mr. Lipman. Your delivery

dates don't suit us. We require the first parcel of 20 compressors a

month after we sign the contract.

Lipman:So I understand that we are to ship the first parcel in December. And what

about the remaining goods?

Bunin: We can accept them in March.

Lipman: Very good. Well, Mr. Bunin, as regards the terms of payment I hope you'll pay

against shipping documents by a Letter of Credit. You are to open it with the

London Bank after our fax that the goods are ready for shipment.

Bunin: Quite right. I'll be glad to sign the contract when you get it ready.

Lipman: We can sign it tomorrow. I'll be glad, Mr. Bunin, if you and Mr. Zotov join our

Sales Manager and me for lunch after we sign the contract.

Bunin: Thank you.

Lipman: So we hope to see you at our office at 12 tomorrow.

Bunin: Good. See you

tomorrow.

 

III. Post-reading stage:

3. Consult a dictionary, read and translate the following words:

to consider offer to increase shipment
to discuss order to reduce Letter of Credit
to accept discount to sign term

4. Match the expressions on the left with those on the right that have a similar meaning:

 

a) to sign a contract )
b) to settle the price problem )
c) to increase the order )
d) acceptable conditions )
e) competitive prices )
f) to be ready for shipment )
g) to give a discount )
h) to pay by a Letter of Credit )
i) to consider the prices )

::

: :

: : : : : : :

: :


Complete the dialogue.

Good afternoon Mr. Lake.

______________________________________

Will you sit down, please?

______________________________________

What can I do for you, Mr. Lake?

You see, Mr.Pospelov, my firm is interested in your boilers.

What do you say to our offer?

_____________________________________

You want a discount, don't you?

________________________Could you reduce price_________________?

Surely, if you________________________________________,we'll

_____________________________________.

Fine. That will settle the price problem.


 


6. Fill in with the prepositions and make up a dialogue on the basis of the text:

I work ... "Avantis". A lot... foreign firms are interested ... doing business ... us. We have made some contracts ... boilers ... latest design lately. Our boilers are ... a great demand now, and we sell them... high prices.

The other day Mr.Gray ... Roberts &Co. came ... Kherson to negotiate ... us. As soon as he came ... Kherson he phoned our secretary and made an appointment... us ... the next day.

He came to see us ... half ... nine. We discussed a lot ... different questions. Our terms ... payment and delivery were acceptable ... him. When the negotiations were over we asked Mr. Gray to have dinner ... us ... Saturday.

DIALOGUE 2 I. 1.Pre reading stage:

1. Read and learn the new words and set expressions:

 

67

1. transaction -

2. we were inclined to consider the prices -

3. power consumption -

4. reliability -

5. trouble-free performance -

6. to assure -

7. we won't let you down -

8. the Release Note for Shipment - , ,

9. to submit - ,

 

10. our good will -

11. discount -

12. the amount of the Contract -

13. concession -

14. profit -

15. currency -

16. terms of payment -

17. cash-

18. Letter of Credit -

19. Telex Transfer -

20. Certified Check -

21. Invoice - -

22. a Packing List -

23. a Certificate of Origin -

24. a Certificate of Quality -

25. an Insurance Policy -

26. cargo -

27. shipment -

2. Learn the terms of contracts:

CIF (Cost, insurance, freight) - Ѳ - , , , - .

FOB (Free on board) - - ( - ).

FOB Airport - - , , , ; , - ( ). , ' , . .

FAS (Free alongside Ship) - , , :

 

, - ;

;

;

.

, ' , .

:

;

;

.

, - .

II. While reading stage:

3. Read, translate and act the dialogue:

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:

Mr Bunin: Mr. Rogers:

Mr. Bunin:

Mr. Rogers: Mr. Bunin:

Mr. Rogers:

Mr. Bunin: Mr. Rogers:


Well, if you increase your order to ?500 000 we will be able to give you a 2 % discount.

It's better, but we expected at least a 4 % discount. 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. CDF Odessa, isn't it? Now the terms of payment. We accept: Cash, Letter of Credit, Telex Transfer, Certified Check.

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. All right. What currency can you pay in: Euro or dollars? We insist on Euro. 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. Good. We could meet tomorrow. What time could you come here again Mr. Bunin?

I suppose I can make it only after two. Then see you at 3. Good buy.


III. Post reading stage:

4. Match the equivalents in two columns:

 

1. transaction
2. competitor
3. requirement
4. Test and Guarantee
5. discount
6. Letter of Credit
7. Certified Check
8. Cash
9. Certificate of Quality
10. Insurance Policy
11. cargo

5. Answer to the questions while reading the 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?

70

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,...?

8. Translate the following into English.

1. .

2. .

3. .

4. , .

5. .

6. .

7. .

8. .

Practice

1. Make up your own dialogue "Negotiating contract". Try to use phrases, you have

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