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Meet Mr. Brown at your office. Discuss the offer of the equipment he has made you. Ask Mr. Brown to give you a discount and discuss the terms of payment.





BUSINESS NEGOTIATIONS

Effective talk requires good preparation. It is to be clearly structured. This simple but very effective plan can help you:

- state what you are going to say and do;

- describe how you are going to do it;

- do it;

- state what you have done.

Discussing a contract

Read and act the dialogue out. Mr. Brown, Mr. Smith, Mr. Petrov and Mr. Ivanov are discussing a contract.

Mr. Brown: Good afternoon, gentlemen. Mr. Petrov, glad to see you again.

Mr. Petrov: Good afternoon, Mr. Brown. Good afternoon, gentlemen.

Mr. Brown: Well, Mr. Petrov, let’s get down to our business.

Mr. Petrov: O.K. You are sure to get acquainted with our draft of the contract for buying your equipment. We’d like to know whether you agree with all the clauses of the contract. As soon as we make the final version of the contract we can sign it and come to practical implementation.

Mr. Brown: I fully agree with you, Mr. Petrov. I and my experts have thoroughly studied the clauses of the contract. Mr. Smith, our sales manager, will speak about our proposals as to some alterations.

Mr. Smith: Thank you. Gentlemen, having analyzed the proposed draft contract and taking into account our methods of work, I’d like to stress the following.

First, the price per unit of equipment also includes the price of all parts providing the efficient functioning of the equipment, as it is pointed out in the appendix to the contract.

Mr. Petrov (looking through the catalogue and appendix):

Well, I think we are not going to have any problems with this.

Mr. Ivanov, buyer’s representative: I think the same, but I have a counter offer. As you are so strict on the quality of your equipment, couldn’t you prolong the guarantee period from 24 to 36 months?

Mr. Smith: Dear Mr. Ivanov, the matter is that the 24-month period is our confirmed term. However, having analyzed all the data, we decided that we could meet your requirement.

Mr. Ivanov: Thank you.

Mr. Brown: Are there any other points in the contract you’d like to clear up?

Mr. Petrov: No, I think we have settled all the points quite clearly.

Mr. Smith: If we come across any problems later, we shall solve them there and then.

Mr. Petrov: Fine. Then our contract may be prepared for signing. We’ll ask our experts and lawyers to do it. I don’t think it will take them long to come up with it.

Mr. Brown: All right, let it be so.

Useful phrases

Making offers



- We were thinking of ... /We suggest...

- The best offer we can make you is …

- We could offer you a discount of 10%.

- We grant a price reduction of 10%.

- We can deliver the equipment in 2 weeks.

- Our deal includes maintenance.

Rejecting the offer

- I’m afraid we cannot accept that.

- We feel that the price is rather high.

- We cannot agree to what you propose.

- That is not negotiable.

- We had much better offers from other companies.

Conditions

- We accept, on the condition that…

- If you shorten delivery, we could...

- We may be able to ... but only if you...

- Provided you ... we might...

 

Winning time

- Could you keep that offer open for 2 more weeks?

- That sounds fine but I’ll have to confer with my boss first.

- I would like to discuss this proposal with my partner.

Reaching agreements

- I’m pleased to say we agree.

- I think we’ve finally come to terms.

- This seems a very reasonable offer.

- We can sign the contract.

 

Writing practice

Сomplete these sentences.

1 Let’s get down to __________.

2 Have you got acquainted with __________?

3 We’d like to know whether__________.

4 As soon as we make the final version __________.

5 We have thoroughly studied__________.

6 We’d like to __________.

7 The price per unit of equipment__________.

8 As you are so strict on__________.

9 The 24-month period __________.

10 We have settled __________.

11 This contract may be __________.

 

CONTRACTS

Clauses of Contract

After talks in London Alexander Petrov has signed the contract between Brown & Co., Ltd. and Techmachimport for the supply of processing equipment. Here are some clauses of this contract.

Contract No. 27/97

London 25 November 2011

 

Brown & Co., Ltd., London, UK, hereinafter referred to as the “Seller”, on the one hand, and Techmachimport, Moscow, Russia, hereinafter referred to as the “Buyer”, on the other hand, have concluded the present Contract as follows:

Subject of the Contract

The Seller has sold and the Buyer has bought the equipment, materials and services as listed in Appendix 1 being an integral part of this Contract.

Prices and Total Value of the Contract

2.1 The total valueof the equipment, spare parts, technical documentation and services in the volume of the present Contract amounts to…

2.2 The prices as per this Contract have been fixed firmly and are not subject to alteration.

Date of Delivery

3.1 The equipment specified in Appendix 1 of the present Contract is to be delivered according to the terms printed in the Specification (See Appendix 1) but not later than twenty (20) days from the date signing of the Contract.

3.2 The delivery date is understood to be the date of the “clean-on-board” Bill of Lading issued in the name of the Buyer.

Terms of Payment

The Buyer is obliged to make payment in GB pounds. Hundred (100) per cent value of the Contract is to be paid in advance to the Seller’s Bank in ten (10) days from the date of the Contract’s signing (as indicated in Appendix l).

Documents required for payment:

-Commercial Invoices (3)

-Original Bill of Lading (1)

- Packing Sheets (3)

-Test and Inspection Certificate (1)

- Copy of the Export Licence (1)

- Insurance Policy (1)

Technical Documentation

Within five (5) days from the delivery date two ( 2) sets of drawings, assembly, operation

and maintenance instructions are to be shipped with the equipment.

Guarantee of the Quality of the Equipment

6.1 The guarantee period is twenty four (24) months from the date of putting the equipment into operation.

6.2 If the equipment proves to be defective during the guarantee period, the Seller at his cost eliminates defects within the shortest possible time or replaces the defective equipment.

6.3 The guarantee is not applied to damage caused by improper storage or careless maintenance. All other terms are stated in the General Conditions attached hereto.

Packing and Marking

Each set of the equipment shall be packed and marked according to the Buyer’s inquiry. Marking Information is the following:

- Contract No.;

- Name of Shipper;

- Name of the Consignee;

-Air Way Bill No.;

-Gross Weight;

- Net Weight;

-Case No.

Insurance

The Seller shall insure the equipment to be delivered on CIF terms against usual transport risks in accordance with the Insurance Agreement.

Arbitration

All disputes and disagreements which may arise due to this Contract or in connection with it shall be settled through friendly negotiations between the parties. Disputes and disagreements that cannot be settled by parties through negotiations are to be submitted for Arbitration.

Other Terms

10.1 All amendments and alterations to this Contract are valid only in written form and should be signed by both parties.

10.2 Upon signing this Contract, all preceding talks and correspondence on it lose their force.

10.3 Neither party is entitled to transfer rights and obligations to any third party without a written consent of the other contracting party.

10.4 The present Contract has been drawn up in two (2) copies; both copies having equal rights.

10.5 Appendix 1. Specifications on 2 pages.







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