STRUCTURE OF A COMMERCIAL CONTRACT PROFESSIONAL ENGLISH IN USE FOR LAW

 

PROFESSIONAL ENGLISH IN USE FOR LAW 33. STRUCTURE OF A COMMERCIAL CONTRACT

 

A Structure of a commercial contract Most written contracts have a similar structure consisting of certain essential clauses, irrespective of the subject matter of the contract. The general pattern of paragraphs can be: Heading For example, ‘Distribution Agreement’. Commencement and Date Usually a commercial contract contains a brief introduction which describes the nature of the agreement, for example ‘This agreement for the sale of…..’ or ‘This Share Agreement …’. The commencement clause will state the date on which the provisions, or conditions of the contract, are to come into effect. The date is usually inserted in the relevant space at completion – the last stage in the formation of a contract Parties The full details of parties are set out. In the case of a company, the registered number is included. This remains unchanged during the life of the company despite any changes of name or registered office.   EXERCISES 33.1 Decide which part of a contract described in A opposite these extracts have come from. 1 “the schedule” The schedule in Four Parts annexed and signed as relative to this Agreement. “the Buyer” shall mean the purchaser of the goods from the Company. 2 The consideration for the sale and purchase of the Contract Shares shall be the net asset value of the Company (subject to …..) plus Three hundred and fifty thousand pounds for goodwill subject to adjustment as follows …. 3 WHEREAS the Vendors have agreed to sell to the Purchaser, and the Purchaser has agreed to purchase, the entire issued share capital of Green Boots Limited (“the Company”) on the terms set out in this Agreement. 33.2 Replace the underlined words and phrases with alternative words and phrases from A opposite. There is more than one possibility for one of the answers. 1. In spite of the differences between the parties at the start of the negotiations, their intention was to form an agreement. 2. We, the parties, in this way agree to purchase the Contract Shares.

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