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BusinessContractsandAgreementsUnit8AdvancedBusinessEnglishWritingContentsIntroductionProceduresfordraftingabusinesscontractFormsandcontentsofbusinesscontractsTypesofbusinesscontractsLanguagefeaturesofbusinesscontractsTerminologyinbusinesscontracts01IntroductionIntroduction
Acontractisanagreementforestablishing,modifying,andterminatingthecivilrightsandobligationsbetweensubjectsonanequalfooting,thatis,betweennaturalpersons,legalpersons,orotherorganizations.Acontractservesasaguideandamemorialoftheagreementthatmustbefollowedbythepartiesinvolved.Introduction
Itpresentseachpartywiththeopportunityto:?Describeallobligationstheyareexpectedtofulfill.?Describeallobligationstheyexpecttheotherpartyorpartiestofulfill.?Limitanyliabilities.?Setparameters,suchasatimeframe,inwhichthetermsofthecontractwillbemet.?Settermsofasale,alease,orarental.?Establishpaymentterms.?Clearlyestablishalloftherisksandresponsibilitiesoftheparties.02ProceduresfordraftingabusinesscontractProceduresfordraftingabusinesscontract
Followingthe12stepsofdraftingabusinesscontractbelowisthekeytosuccessinyourbusinesstransaction.Labelthedocument.Usetheterms“Contract”or“Agreement”todistinguishyourcontractfromotherlegaldocumentsinyourfiles.Separatethedocumentpartsintosegmentsthatidentifyeachparagraph’spurposeorintent.Labelthesesegmentswithnumbersorletterstoclarifythemfromoneanother.
Listthepartiesinvolvedinthecontract.Includecontactinformationasyoulisttheparties.Asyourefertothepartieslaterinthecontract,youcanshortentheiridentificationornames.Writeoutthepurposesofthecontractpriortoprovidingthedetails.Thepurposesincludetheservicesprovided,theproductcreated,laborexerted,oranyotherfocusesthatpertaintothepurposesoftheagreement.Writeoutthepurposesofthecontractpriortoprovidingthedetails.Thepurposesincludetheservicesprovided,theproductcreated,laborexerted,oranyotherfocusesthatpertaintothepurposesoftheagreement.Proceduresfordraftingabusinesscontract
Indicateanymonetaryissues.Thesemayincludecosts,paymentarrangements,orinterestchargesforlateordeferredpayments.Duedatesandamountsshouldbeaddressedwithspecificinformation.Forinstance,ifapaymentisdueinthemiddleofthemonth,thecontractshouldsay“bythe15thofthemonth.”Identifyalldeadlinesassociatedwiththecontract,alongwiththecontractenactmentdate.Projectcompletion,productdelivery,orothertimelinesshouldbeclearlywrittenoutfortheprotectionofallpartieswithinthecontract.Proceduresfordraftingabusinesscontract
Explaintheexpirationdate,alongwithanyrenewalterms,ifapplicable.Manycontractsexpire,suchasleaseagreements.Thedetailsoftheexpirationshouldbeexplainedindetail.Writeintothecontractanyconsequencesforbreachofcontractforallparties.Consequencesoftenincludepaymentforservicesnotrendered,reimbursementfordamages,andautomaticterminationofthecontract.Includedetailsaboutallconsequencesandwhatbreachofcontractmightentail.Proceduresfordraftingabusinesscontract
Consideramediationandarbitrationclause.Intheeventofadispute,itmaybeadvantageoustoincludeaprovisionthatrequiresthepartiestoentereithermediationorarbitration,orboth.Mediationisavoluntaryprocesswhereallpartiestrytoworkouttheirissuesdirectly,withthehelpofaneutralthird-partymediator.Arbitrationisamoreadversarialprocesswherethearbitrator(sometimesapanelofarbitrators)hearsbothsides’argumentsandmakesadecisionthatallpartiesmustabideby.Proceduresfordraftingabusinesscontract
Provideterminationconditions.Mostcontractscanbeterminatedthroughmodificationsorotherrequests.Writespecificsaboutthedetailssurroundinghowthecontractmaybeterminatedandanyconsequencesthatmightresultfromthetermination.Createsignaturelinesforallpartiestothecontract.Providespacesforprintednamesanddates,alongwithanareaforawitnesssignature.Requirethatallpartiessignthecontractbeforeitcanbeenacted.Proceduresfordraftingabusinesscontract
03FormsandcontentsofbusinesscontractsFormsandcontentsofbusinesscontracts
Followingarelativelysimpleformulawillensureyouhaveavalidandbindingcontract:Formsandcontentsofbusinesscontracts
Asshowninthesamplecontractabove,abusinesscontractconsistsofthreebasicparts:thepreamble,body,andconclusion.Thestructureofabusinesscontractisthereforeasfollows:Formsandcontentsofbusinesscontracts
Detailedcontentsofbusinesscontractsmayincludethefollowingelements,butnotallofthemhavetobeincludedineverycontract(seeSamples2and3):?title?signingparties?date&place?natureofcommodity(coveringnamesofthegoodsandspecifications)?quality?quantity?price(coveringthecurrencyforpayment,unitprice,totalprice,andtradeterms)?packing(coveringthepackingway,packingweight,size,andpackingmaterial)?insurance(coveringthepolicyandconditionofinsurance)?shipmentanddelivery(coveringthedeliveryplaceanddate)Formsandcontentsofbusinesscontracts
?industrialpropertyrightandpatent(coveringtermsofindustrialpropertyrightandpatentrange,cost,andresponsibilitybearingincasethereisaviolationoftheindustrialpropertyrightorpatent)?payment(coveringeverydetailrelevanttopaymentmaking)?inspection(coveringthetestingsubjects,standard,inspectingbodies,cost,andauthority)confidentialclause(settingupspecificregulationsforwhatisconfidentialandtheconfidentialmeasurestobetaken)?guarantee(indicatingguaranteeterms)?claim(coveringthedetailsforclaiming)?breachandrescissionofthecontract(listingthetermsandcompensations,aswellastheresponsibilitiesforbreachandrescissionofthecontract)?arbitration(coveringdetailsforarbitrationincaseofdisputes)Formsandcontentsofbusinesscontracts
?applicablelaws(indicatingwhichlawsareappliedastheprincipallawsincaseofdisputes)?miscellaneousclause(indicatingwhatisunsettledinthepreviousclausesofthecontract)?conclusion(includingtheconcludingsentence,signaturesoftherepresentativesofallpartiesandtheirpositions)?appendix/addendum04TypesofbusinesscontractsTypesofbusinesscontracts
Acontract,asalegallyenforceableagreement,isenforceablebyrelevantlaws.Manydifferenttypesofcontractsexist;theyvarybyindustryandarecommensuratewiththetypesofgoodssuppliedorservicesperformed.Thereareseveralbroadcategoriesofcontractsthatmightbeenteredintoinyourbusinessdealings.Thesecategoriesinclude:sales-relatedcontracts,leases,employment-relatedcontracts,andothergeneralbusinesscontracts.Sales-relatedcontractsSales-relatedcontractsinclude:?abillofsale,whichdocumentsthetransferofpropertyfromonepartytoanother(seeSample4)?anagreementforthesaleofgoods,whichincludesthegoodsorservicestobesold,theprice,themeansofdelivery,andsomeotherprovisionsthatprotectthepartiesinthetransaction?apurchaseorder,whichisinitiatedbythebuyerofferingtopurchaseacertainamountofgoodsorservices(seeSample5)?awarrantyorlimitedwarranty,whichisaguaranteethatcoversthesaleorpurchaseofgoodsorservices?asecurityagreement,whichgovernsasecuredtransactionSales-relatedcontractsSales-relatedcontractsLeasesLeasesgenerallyfallintotwotypesofcontracts:realpropertyleasesandequipmentleases(seeSample6).Arealpropertyleaseisusedtodocumentthetermsofrentingland,abuilding,orotherspaceusuallyusedtorunyourbusiness.Equipmentleasescomeinmanyshapesandsizes,andyoumayneedaleaseagreementforyourcopymachineoryourcombine,oranythinginbetween.Thedistinctionisthatarealpropertyleaseusuallygovernsthingsthatcannotbepickedupandmoved,whereasanequipmentleasegovernsvirtuallyeverythingelse.LeasesEmployment-relatedcontractsAnemployment-relatedcontractisalegaldocumentwhichstipulatesthetermsofemploymentbetweenanemployeeandanemployer.Itisusuallydraftedandsignedatthestartofemployment;however,ifithasnotbeensignedthen,itshouldbesignedwithinthefirsttwomonthsofbeinghired.Anemployment-relatedcontractcoverssuchtopicsasthestartingdateofemployment,namesoftheemployerandemployee,addressofemployment,salary,expenses,timeoffwork,hoursworkedeachweek,termsofemployment,pensiondetails,deductions,andnoticeforterminationofthecontract.Employment-relatedcontractsincludeemploymentagreements(seeSample7),employeenon-competeagreements(seeSample8),independentcontractoragreements,consultingagreements,confidentialityagreements,reciprocalnon-disclosureagreements,andemploymentseparationagreements.Employment-relatedcontractsEmployment-relatedcontractsEmployment-relatedcontractsAllothercontractsvaryandsocanbelumpedintoacategoryofgeneralbusiness.Thesemayincludefranchiseagreements,indemnityagreements,settlementagreements,releases,assignmentsornovationsofcontracts,partnershipagreements,jointventureagreements(seeSample9),agreementsforthesaleofabusiness(seeSample10),andmanyothers.Anagreementexistsforalmostanykindofbusinesstransactionyoucanthinkof.Employment-relatedcontracts05LanguagefeaturesofbusinesscontractsTheuseofformalandlegalwords
Theuseofarchaicwords
Archaicwordsoftenappearintheformofcompoundadverbsinbusinesscontracts;thatis,theyareformedbyadverbshere,there,wherecombinedwithparticlessuchasafter,by,at,from,in,of,to,upon,under,with,as,etc.TheirmeaningsincommonEnglishareasfollows:hereafter=afterthis;laterinthecontracthereby=bymeansofthis;byreasonofthisherein=inthishereof=ofthishereunder=underthisthereof=ofthatthereby=bythatmeansthereafter=afterward;afterthattherein=inthatthereunder=inaccordancewiththethingmentionedFrequentuseofdoublets
Thereisacommonuseofcollocationsorpairingofwordsinwhichsynonyms,near-synonyms,orrelatedwordsarecombinedin“doublets”withandorortoavoidambiguityandpolysemy.Suchwordscanbenouns,verbs,adjectives,orprepositions.Examplesincludeanyandall,asandwhen,byandbetween,finalandbinding,supportandmaintenance,fulfillorperform,coverandinclude,obligationsandresponsibilities.TheuseofmodalverbsThefrequentuseofmodalverbsisanothersalientcharacteristicofthelanguageforbusinesscontracts.Amongthemodalverbs,shallismostfrequentlyusedincontracts,whichindicatescompulsorydutiesandobligationsandcannotbereplacedbymustorshould.Shouldinbusinesscontractsonlymeansif,whichisusedtointroduceaconditionalclause.Besides,themodalverbmayisoftenusedincontracts,whichindicatestheright,power,orprivilegeofaparty.UnusualuseofthesameandsaidTheuseofthesameandsaidinlegaldocumentslikebusinesscontractsisquitedifferentfromthatincommonEnglishtexts.Thesameusuallyimpliescomparisontoasimilarobjectorperson,butinlegaluse,itreferstosamenessofreference.Thewordsaidinlegaldraftingisusedasademonstrativepronounmeaningthisoranadjectivemeaningtheabove-mentioned.TheuseofthepresenttenseThepresenttenseisusedinsteadofthefuturetenseeventhoughmanyarticlestipulationsaresetforthforfuturematters.Forexample:?ThepatentdescribedinArticle2isnotissuedwithin30daysfromthesigningofthisContract.?TheLicenseemayterminatethisContract90daysafterawrittennoticethereofissenttotheLicensoruponthehappeningofoneofthefollowingevents.TheuseofthepresenttenseThepresenttenseisusedinsteadofthefuturetenseeventhoughmanyarticlestipulationsaresetforthforfuturematters.Forexample:?ThepatentdescribedinArticle2isnotissuedwithin30daysfromthesigningofthisContract.?TheLicenseemayterminatethisContract90daysafterawrittennoticethereofissenttotheLicensoruponthehappeningofoneofthefollowingevents.TheuseoflongsentencesThelengthofsentencesinbusinesscontractsismuchlongerthanthatoftheaverageEnglishsentences.Inbusinesscontracts,toaccuratelyandobjectivelyexplaintherightsandobligationsoftheparties,someexceptionallylongandcomplicatedsentencesareused.Theyareformalandseriousintoneandcanprovidedetaileddescriptionsordefinitions.Hencesentencetypeslikedeclarativesentencesandperiodicsentencesareusedmuchmorefrequentlyinbusinesscontractsthaninotherdocuments.FrequentuseofconditionalclausesInbusinesscontracts,themostfrequentlyusedclausetypeistheconditionalclausesintroducedbyincase,intheeventthat,providedthat,should,orif,whichexpressconditionsandrequirements,andconveyasenseofdignityoflaw.Forexample:?IncasetheEmployerdelaysthepaymentoftheprojectcosttotheContractor,interestshallbechargeableat10%permonthontheamountandforthenumberofdaysinarrears.06TerminologyinbusinesscontractsClassroomPracticeClassroomPracticeKeyforreference:
本協(xié)議由甲方和乙方簽訂。
一切爭端應(yīng)首先通過友好會談進行解決。
第一次董事會會議應(yīng)在公司營業(yè)執(zhí)照簽發(fā)后一個月內(nèi)召開。
董事長可根據(jù)董事會三分之一董事的提議,召集臨時董事會議。
本合同的修改只有經(jīng)合同雙方簽字并經(jīng)原審批主管機關(guān)批準后才能生效。
本合同期滿時,雙方之間發(fā)生的未了債務(wù)不受合同期滿的影響,債務(wù)人應(yīng)向債權(quán)人繼續(xù)支付未了債務(wù)。
買方有權(quán)確定在規(guī)定期限內(nèi)提取貨物的時間和/或地點時,應(yīng)給賣方有關(guān)這方面的通知。
當事人申請仲裁,應(yīng)當向仲裁委員會遞交仲裁協(xié)議、仲裁申請書及副本。12345ReviewQuestionsWhatisacontract?Whendoyouneedtohaveasignedcontract?Whatessentialelementshavetobeincludedinabusinesscontract?Whatarethefourbasiccategoriesofbusinesscontracts?Canyoutellthemoststrikinglanguagefeaturesofbusinesscontracts?Canyoulisttheimportantstepsindraftingabusinesscontract?Task-basedExercises1TranslatethefollowingEnglishsentencesintoChinese.ThisContractismadeintwooriginalsthatshallbeheldbyeachparty.WhatisleftunmentionedintheContractmaybeaddedthereasanappendix.TheContractiswritteninquadruplicate(twofororiginalsandcopiesrespectively),whichshallbecomevalidonthedateofsignature.ThisContractisexecutedintwocounterparts,eachinChineseandEnglish,eachofwhichshallbedeemedequallyauthentic.ThisContractisintwocopies,effectiveuponbeingsigned/sealedbybothparties.ThisContractismadebyandbetweenthebuyersandsellers,wherebythebuyersagreetobuyandthesellersagreetoselltheunder-mentioned.Commoditiesaccordingtothetermsandconditionsarestipulatedbelow.Task-basedExercises1Keyforreference:1)此合同一式二份,由雙方各持一正本。2)本合同未盡事宜,可由雙方增補作為合同附件。3)本合同一式四份(正副本各兩份)自簽署后生效。
4)本合同為中英文兩種文本,兩種文本具有同等效力。本合同一式兩份。自雙方簽字(蓋章)之日起生效。5)本合同由買賣雙方訂立,買方同意購買,賣方同意出售以下所述商品,具體條款和條件如下所規(guī)定。Task-basedExercises2TranslatethefollowingChinesesentencesintoEnglish.貨物抵達目的港15天內(nèi),買方可以憑有信譽的公共檢驗員出示的檢驗證明向賣方提出短重索賠。買方須于本合同簽字并生效后30天內(nèi)通過出口地銀行開立以賣方為收益人的不可撤銷信用證支付全部貨款計30,000美元。設(shè)備和原料須根據(jù)其形狀和特點以完善而牢固的方式精心妥當?shù)匕b,包裝須適合于長途海、陸運輸,能經(jīng)受多次裝卸。若貨物經(jīng)中國商品檢驗局復檢后發(fā)現(xiàn)質(zhì)量與本合同之規(guī)定不符,買方有權(quán)于貨物抵達目的港后的60天內(nèi)向賣方提出索賠。若經(jīng)中國商品檢驗局復檢發(fā)現(xiàn)貨物質(zhì)量與提單所示重量不符,買方有權(quán)于貨物抵達目的港后的60天內(nèi)向賣方提出短重索賠。Task-basedExercises25)如果一方違反任何其根據(jù)第18.1條或18.2條所作的陳述及擔?;蛑厥?,則另一方有權(quán)根據(jù)本合同或相關(guān)法律尋求任何可能的救濟,除此之外,違約方應(yīng)當賠償另一方或合營公司因此種違反而招致的任何損失、損害、費用、開支、責任或索賠。Task-basedExercises2Keyforreference:1)TheBuyersmay,within15daysafterarrivalofthegoodsatthedestination,lodgeaclaimagainstthesellersforshort-weightbeingsupportedbyInspectionCertificateissuedbyareputablepublicsurveyor.2)Within30daysafterthesigningandcomingintoeffectofthiscontract,theBuyershallproceedtopaythepriceforthegoodstotheSellerbyopeninganirrevocableL/CforthefullamountofUSD30,000infavoroftheSellerthroughabankatexportport.3)TheEquipmentandMaterialshallbecarefullyandproperlypackedinthebestandstableconditionaccordingtothefiguresandcharacteristicsoftheEquipmentandMaterialsoastowithstandlong-distanceseaandinlandtransportationandnumeroushandlings.Task-basedExercises24)TheBuyershallhavetherighttoclaimagainsttheSellerforcompensationoflosseswithin60daysafterarrivalofthegoodsattheportofdestination,shouldthequalityofthegoodsbefoundnotinconformitywiththespecificationsstipulatedintheContractafterre-inspectionbytheChinaCommodityInspectionBureauandtheBuyershallhavetherighttoclaimagainsttheSellersforcompensationofshort-weightwithin60daysafterarrivalofthegoodsattheportofdestination,shouldtheweightbefoundnotinconformitywiththatstipulatedintheBillofLadingafterre-inspectionbytheCCIB.Task-basedExercises25)IfaPartybreachesanyoftherepresentationsorwarrantiesgivenbyitinArticles18.1orrepeatedin18.2,theninadditiontoanyotherremediesavailabletotheotherpartyunderthiscontractorunderApplicableLaws,itshallindemnifyandkeepindemnifiedtheotherPartyandthecompanyagainstanylosses,damages,costs,expenses,liabilitiesandclaimsthatsuchPartyortheCompanymaysufferasaresultofsuchbreach.Task-basedExercises3Fillintheblankswiththewordsorexpressionsinthebox,someofwhichmaybeusedmorethanonce.Changetheformwhennecessary.ThentranslateeachsentenceintoChinese.1)TheAgreementismadeandenteredintoonMarch5,2024inBeijing,ChinabyandbetweenABCCorporation,aChineseenterprisedulyorganizedandexistingundertheLawsofthePeople’sRepublicofChinawithitsprincipalbusinessplaceatBeijing(
referredtoas
)andXYZCompany,acompanydulyorganizedandexistingundertheLawsoftheArabRepublicofEgyptwithitsprincipalbusinessplaceatCairo(
referredtoas(
).Task-basedExercises32)The
shallenterintoandexecutetheContract,tobepreparedandcompletedatthecostofthe
.3)The
producesandsellstheGoodslistedinExhibitAattachedtotheContractandseekstoengagethetosell
theGoodsinSanFrancisco,U.S.A.4)
thereareanydisputesduringthe
oftheContract,bothsidesshalltrytosettleinfriendlyconsultationbeforehandingittothearbitration.5)TheAppendixwillhavethesame
astheContract.6)Unless
providedforbythisContract,PartyAwillreturnfullamountofthedepositwithoutinterestonthedaywhenthisContractexpiresandPartyBclearsthepremisesandhaspaidallduerentalandotherexpenses.7)Incasethe
failstomakedeliveryaccordingtothefinaldeliveryschedules,theSellershallpaythe
apenalty.8)Theprevailingpartyinanylitigation,arbitration,ormediationrelatingtothis
shallbeentitledtorecoveritsreasonable
partyforallmatters,includingbutnotlimitedtoappeals.Task-basedExercises3Keyforreference:1)hereafter,PartyA,hereafter,PartyB本合同由ABC公司和XYZ公司于2024年3月5日在北京簽訂。ABC公司根據(jù)中華人民共和國法律成立和組織,主要營業(yè)場所在中華人民共和國北京(以下簡稱甲方),XYZ公司根據(jù)埃及阿拉伯共和國法律成立和組織,主要營業(yè)場所在埃及阿拉伯共和國開羅(以下簡稱乙方)。2)Contractor,Employer承包人應(yīng)簽訂并履行合同,該合同的擬定和簽訂費用由業(yè)主承擔。3)Manufacturer,Representative生產(chǎn)商生產(chǎn)、銷售合同附件A所列的貨物,讓代理方為其在美國舊金山銷售貨物。4)Providing,execution如在合同執(zhí)行過程中有任何爭議,雙方應(yīng)先進行友好協(xié)商,如無法協(xié)商解決再付諸仲裁。Task-basedExercises35)effectiveness附錄與本合同具有同等效力。6)otherwise除合同另有約定外,甲方應(yīng)于租賃關(guān)系消除且乙方遷空
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