5. Contracts CHECK YOUR ENGLISH VOCABULARY FOR BUSINESS AND ADMINISTRATION

CHECK YOUR ENGLISH VOCABULARY FOR BUSINESS AND ADMINISTRATION

5. Contracts

Exercise 1: The text below gives a definition and brief explanation of what a contract is. Complete it with words or expressions from the box. A contract can be defined as 'an __________ between two or more parties to create legal __________ between them'. Some contracts are made '__________': in other words, they are __________ and sealed (stamped) by the parties involved. Most contracts are made __________ or in __________. The essential elements of a contract are: (a) that an __________ made by one party should be __________ by the other; (b) __________ (the price in money, goods or some other __________, paid by one party in exchange for another party agreeing to do something); (c) the __________ to create legal relations. The __________ of a contract may be __________ (clearly stated) or __________ (not clearly __________ in the contract, but generally understood). A __________ of contract by one party of their __________ entitles the other party to __________ for __________ or, in some cases, to seek specific performance. In such circumstances, the contract may be __________ (in other words, it becomes invalid). Exercise 2: Look at paragraphs 1 – 6 in the boxes, and answer the questions that follow them. 1 This contract is binding, and we expect all the parts involved (both clients and suppliers) to abide by the terms and conditions stated in sections 3a - 37g on pages 1 - 17. 1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it. 2. True or false: A contract which is binding is flexible and can be changed at any time. 3. Which of these words / expressions could replace abide by?: (a) choose (b) agree with (c) obey (d) change 2 On terminator of this contract, the company will be obliged to return any unused materials to the supplier within 28 days, unless provision has been made for a temporary extension. If any of the rules of the contract are broken, all materials must be returned immediately. 1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it. 2. True or false: Provision has a similar meaning to arrangement. 3. Rearrange these letters to make two words which have a similar meaning to obliged: degabtlio          edequrir 3 The contract was originally verbal, but we've finally managed to get the company to give us something on paper. They say that this contract is un-negotiable, but maybe we can persuade them to amend some of the details before we sign on the dotted line. 1. One of the underlined words / expressions in the above paragraph is wrong. Identify and correct it. 2. True or false: The speaker thinks that it might be possible for small changes to be made to the contract before she signs it. 3. Rearrange the letters in bold to make four words which have the same meaning as verbal in this situation rola kosnep plidemi etodnurdso 4 Swillpot Airline Catering Ltd were sued by Pan-Globe Airways when they were found to be in beach of their contract, specifically that they had failed to comply with clause 27B, which stated that their food should be "fit for human consumption". 1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it. 2. Find a word or expression in paragraphs 1 - 3 above which has a similar meaning to comply with in paragraph 4. 3. True or false: Pan-Globe Airways are unhappy with Swillpot Airline Catering because they have broken all of their contract. 5 Withers Interiors Ltd have entered into an agreement with Sophos Construction to act as sole providers of quality interior fittings commencing 15 August this year. This is to run for 18 months, with a 3 month period of notification in the event of cancellation by either side. 1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it. 2. Which word in the paragraph is the closest in meaning to the noun contract? 3. True or false: If either Withers Interiors Ltd or Sophos Construction want to end the contract, they must tell the other company 3 months before they do it. 6 This contract recognizes the anointment of Mr Alan Wiley as non-executve Director to the board of AKL Publishing following the company's amalgamation with Berryhill Books. While Mr Wiley may continue to buy stocks in the company, he may not acquire a controlling interest, and he may have no professional dealings with any third parties during this period. 1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it. 2. True or false: AKL Publishing recently separated from Berryhill Books. 3. Mr Wiley can buy as many shares as he likes in the company. 4. In addition to sitting on the board of AKL Publishing, how many other companies can Mr Wiley work for?

ANSWER KEY

Exercise 1: Here is the complete text: A contract can be defined as 'an agreement between two or more parties to create legal obligations between them'. Some contracts are made 'under seal': in other words, they are signed and sealed (stamped) by the parties involved. Most contracts are made verbally or in writing. The essential elements of a contract are: (a) that an offer made by one party should be accepted by the other; (b) consideration (the price in money, goods or some other reward, paid by one party in exchange for another party agreeing to do something); (c) the intention to create legal relations. The terms of a contract may be express (clearly stated) or implied (not clearly stated in the contract, but generally understood). A breach of contract by one party of their contractual liability entitles the other party to sue for damages or, in some cases, to seek specific performance. In such circumstances, the contract may be voided (in other words, it becomes invalid)