国际贸易实务教学课件：Chapter 2 Negotiation of business contract

1、Chapter Two Negotiation of Business Contract Lead-in：nWhat is a contract? nWhat form should a contract be? nWhat content should a contract have? nWhat kind of preparations should be done before signing a contract? nWhat is business negotiation?nnegotiation of business contract 2focusfocusNegotiation

2、Proceduresto geta contractPreparations of contractContents of contractDefinition &forms of contractexercises and assignmentPerformance of contractnegotiation of business contract 3negotiation of business contract 4Key wordsKey wordsacceptanceofferinquirypreambleWitness clausebodynIt is a commitm

3、ent between the buyer and the seller. nForm: No standardn oral n written n( short , long )n(contract, confirmation, agreements, orders, letter of intent, memorandum n Three sections of a written contract n preamble, body, witness clause Definition & Form of contract negotiation of business contr

4、act 5nEssential termsnSellers and buyers name nThe name of commodity and unit price nTerms of delivery nPayment terms nDelivery date ninsurancecontents of contract preamble, body, witness clause nadditional termsnClaim clause nArbitration clause nForce Majeure clause nOther termsnImport license nAme

5、ndments and supplementsnSupersede contractnResignment right negotiation of business contract 6nnegotiatorsPreparations to get a contract nbuyersnschedulesnMarket negotiation of business contract 7nBusiness Negotiation is a series of dealings between the seller/exporter and the buyer/importer to reac

6、h an agreement on price, payment, quality, quantity and other terms of conditions of a deal.Negotiation Procedures to get a contractnegotiation of business contract 8Negotiation Procedures to get a contractinquiryofferacceptancesales contractCounter offernegotiation of business contract 91. As we ar

7、e interested in your products, please quote your best price and indicate other terms for 2,000 metric tons of walnut in sell for earliest shipment. (Invitation to offer)2. We are in a position to supply Chinese Walnut in shell 2005 crop. If you are interested, please give us a bid. (Invitation to bi

8、d)3. Dear sirs,Thanks for your enquiry dated June 5. We offer firm subject to reply on June 15, 2005, 3,000 pairs of Chinese shoes Grade A 3 dollars per pair CFR Montreal, shipment with one month after receipt of sight L/C, which must reach here by the end of August. Please make quick acceptance.You

9、rs Faithfully,Ollie (A firm offer should be clear, complete and final.)4. Your offer of 20th July acceptable if the price could be lowered 15 cents per unit. (Counter-offer) 5. Your letter of July 20th has been received, and we can accept the terms and conditions of it without any further negotiatio

10、n. Please arrange the production as agreed. (acceptance ) Negotiation Procedures to get a contract-examplesnegotiation of business contract 10negotiation of business contract 11exercisecase 1. If a letter includes the sentence “your offer is accepted but we hope the shipment can be made in March”, i

11、s it an acceptance? n2. Read the following letter and answer the questions.nDear sirs, nWe are in receipt of your letter of Feb, 21, 2010, for which we thank you, and to which we replied by telex this morning. nYou will have noted from our telex that we are in a position to make you firm offer of 25

12、0 M/Ts steel tubes at $ 580.00 per M/T CIF Seattle, shipment to be effected within two months after receipt of your order, payment by sight letter of credit. This offer is subject to your reply reaching here within two weeks. nYours faithfullynQuestions：Is this a firm offer or non-firm offer? What a

13、re the characteristics of firm offer? negotiation of business contract 12exercisenII. True or False n1. Usually terms of trade are stipulated in the trade contract and clearly indicate both parties responsibilities.n2. Claim and arbitration clause must be included in the written contract. n3. Once s

14、igned, any amendments and supplements to the present contract could not be accepted. n4. If possible, the seller has the duty to help the buyer achieve import license. n5. Written form of contract has a lot of advantages in disputes resolving, so every contract should be conducted in written. n6. In

15、 most cases, in order to get a contract, both the buyer and the seller will experience many rounds of offer and counter-offer. negotiation of business contract 13exercisen7. Once an offer being accepted, the seller can not change it no matter what kind of reason it would be. n8. According to CISG, t

16、here is firm offer and non-firm offer.n9. A firm offer should include at least three specific conditions: name of commodity, quantity of commodity and price of commodity. n10. The content of the offer can be indefinite. n11. A firm offer must indicate that once it has been unconditionally accepted b

17、y the offered within its validity, the offer is binding on both parties. n12. According to CISG, an offer, if it is irrevocable, may not be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer. negotiation of business contract 14nIIIMultiple Choicen1. A contract ca

18、n be divided into three parts, they are _. nA. offer, counter offer, acceptance B. preamble, body, witness clause nC. preamble, head and tail D. head body, signaturen2. Contracts can take the forms of the following except_. nA. letter of intent B. memorandum C. agreement D. telegraphic letter n3. Un

19、der CIF term, the insurance should be covered by _. nA. the buyer B. the buyers agent C. the seller D. the sellers agentn4. The two indispensable procedures of contract negotiation are _. nA. inquiry and offer B. offer and counter-offer nC. counter-offer and acceptance D. offer and acceptancen5. Gen

20、erally speaking, the offer takes effect _. nA. after the offer reaches the offeree B. before the offer reaches the offeree nC. when the offerer sends the offeree D.when the offeree decide to accept itn6. Any exporter who wants to sell his products in a foreign country or countries must first conduct

21、 a lot of _.nA. market research B. currencies C. purchases D. advertisementsnegotiation of business contract 15exercisen7. The correct sequence of the following links is _.nA. offer-enquiry-counteroffer-acceptance B. enquiry-offer-counteroffer-acceptancenC. offer-counteroffer-enquiry-acceptance D. e

22、nquiry-acceptance-offer-counteroffern8. Read the following letter, nDear sirs, nWe have heard from the British Embassy in Paris that you are producing for export handmade shoes and gloves in natural materials.nThere is a steady demand in France for high-quality goods of this type. Sales are not high, but a good price can be obtained for fashionable designs.nWill you please send us your catalogue and full details of your export prices and terms of payment, together with samples of leathers used in your articles and, if possible, specimens of some of the ar