Transcript Document

Business Negotiation Itself
1.Words & Expressions
2.Activities for Comprehension
1.Words & Expression
(1) commission; (2) inquiry; (3) invoice; (4) offer;
(5) CIF; (6) sight L/C; (7) bank draft;
(8) the United Nations Conventions on Contracts
for International Sale of Goods
(1)commission [kəˈmɪʃən] n. [C,U]
A fee or percentage allowed to a sales representative
or an agent for services rendered.
Examples:
① The salesman can get commission on everything he sells.
② The Tokyo contractor was asked to kick $ 6000 back as commission.
③ Travel agents charge 1 per cent commission on sterling cheques.
(2) inquiry
[ɪn'kwaɪərɪ] n. [C,U] (The spelling enquiry is also used. Inquiry
is
sometimes pronounced /'ɪŋkwɪri/ in
American English.)
an act of asking for information or the process of asking about
something or examining something in order to get more information.
Examples:
① He made some inquiries and discovered she had gone to the Continent.
② Mr. Baker is sent to Beijing to make an inquiry at China National Textiles
Corporation.
③ China National Silk Corporation received the inquiry sheet sent by a British
company.
(3) invoice ['ɪnvɔɪs] n. [C]
An invoice or bill is a commercial document issued by a seller to a buyer,
indicating the products, quantities, and agreed prices for products or
services the seller has provided the buyer. An invoice indicates the sale
transaction only.
Example：
① The seller has to issue a tax invoice.
② The shipping costs can be as high as 50 % of the invoice value of
the goods.
③ Entry into the United States would require consular invoice in
quadruplicate.
(4) offer ['ɒfə(r)] n.
In business, an offer is an expression of willingness to contract on
certain terms, made with the intention that it shall become binding as
soon as it is accepted by the person to whom it is addressed .
Example：
① The lawyers say no one else will make me an offer.
② Our offer was met with a firm refusal.
(5) CIF (Cost, Insurance and Freight)
A trade term requiring the seller to arrange for the carriage of goods
by sea to a port of destination, and provide the buyer with the documents
necessary to obtain the goods from the carrier.
Contracts involving international transportation often contain
abbreviated trade terms that describe matters such as the time and place
of delivery, payment, when the risk of loss shifts from the seller to the
buyer and who pays the costs of freight and insurance. The most
commonly known trade terms are Incoterms, published by the
International Chamber of Commerce (ICC). These are often identical in
form to domestic terms (such as the American Uniform Commercial Code),
but have different meanings. As a result, parties to a contract must
expressly indicate the governing law of their terms.
(6) sight L/C A letter of credit that is payable once it is presented
along with the necessary documents. An organization
offering a sight letter of credit commits itself to paying
the agreed amount of funds provided the provisions of
the letter of credit are met.
For example, a business owner may present a bill
of exchange to a lender along with a sight letter of credit,
and walk away with the necessary funds right then. A
sight letter of credit is thus more "on demand" than some
other types of letters of credit.
(7) bank draft A type of check where the payment is guaranteed to be
available by issuing bank. Typically, banks will review
the bank draft requester's account to see if sufficient
funds are available for the check to clear. Once it has
been confirmed that sufficient funds are available, the
bank effectively sets aside the funds from the person's
account to be given out when the bank draft is used.
Bank drafts are normally involved in transactions
involving large sums of money and/or situations where
trust can be an issue. Suppose you are purchasing a
new car, showing up with a bank draft allows the
dealership the assurance that you have enough money to
purchase the vehicle and that your check will not bounce.
(8) the United Nations Conventions on Contracts for International
Sale of Goods (Vienna, 11 April 1980)
Entry into force: January 1988, in accordance with article 99.
Registration: January 1988, No. 25567
Status: Signatories : 18. Parties : 80
Text: United Nations, Treaty Series , vol. 1489, p. 3; depositary notification
C.N.862.1998.TREATIES-5 of 19 February 1999 (procès-verbal of rectification of the
authentic Arabic text); C.N.233.2000.TREATIES-2 of 27 April 2000 (rectification of the
Russian authentic text); and C.N.1075.2000.TREATIES-5 of 1 December 2000
[rectification of the original of the Convention (Arabic authentic text)].
Note: The Convention was adopted by the United Nations Conference on Contracts for
the International Sale of Goods, held at Vienna from 10 March to 11 April 1980. The
Conference was convened by the General Assembly of the United Nations, in
accordance with its resolution 33/93 of 16 December 1978, adopted on the basis of
chapter II of the report of the United Nations Commission on International Trade Law on
the work of its eleventh session (1978).
The Convention was opened for signature at the concluding meeting of the
Conference on 11 April 1980 and remained open for signature at the United Nations
Headquarters in New York until 30 September 1981.
(1) Why should the seller and the buyer negotiate about the trade terms？
(2) What must be included in the trade terms？
(3) What is the meaning of “Acceptance by Action”?
(4) What will happen if the acceptance reaches the offeror too late?
(5) In which case can terms be considered being altered materially?