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1、Chapter 7International Business Contract 1USTB刘志伟-UIBEP 版权所有2 2ObjectivesKnow how to make business contract in English languageMaster the tips of business contract making213Get familiar with the form,terms,and characteristics of business contractUSTB刘志伟-UIBEP 版权所有3 3Chapter73123USTB刘志伟-UIBEP 版权所有4 4
2、Introduction of Business ContractDefinition of Business ContractqAbusinesscontractisalegallybindingagreementbetweentwopartiesforanexchangeofgoodsorservicesorintellectualpropertyrightsthatareofvalue.Foracontracttobevalid,anoffermustbemadeandaccepted.Usingacontractinbusinessdealingshelpsensureanagreem
3、entisactedon,insofarasabrokencontractcouldresultinalawsuitorout-of-courtsettlementandthepaymentofdamagescausedbythebreachofthecontract.Thebestwaytoavoidadisputeorpotentiallitigation,however,istodraftasolidagreementinwhichyouareconfidentyouhavenegotiatedthebesttermsforyourbusiness.qForalegallyvalidbu
4、sinesscontract,allyouneedisaclearagreementandmutualpromisestoexchangethingsofvalue.qMostcontractsonlyneedtocontaintwoelementstobelegallyvalid:Allpartiesmustbeinagreement(afteranofferhasbeenmadebyonepartyandacceptedbytheother).Somethingofvaluemustbeexchanged-suchascash,services,orgoods,orintellectual
5、propertyrights(orapromisetoexchangesuchanitem)-forsomethingelseofvalue.USTB刘志伟-UIBEP 版权所有5 5USTB刘志伟-UIBEP 版权所有6 6Introduction of Business ContractOral Business ContractsqAnoralcontractisaspokenagreementthatisasvalidasawrittencontractinmostcountries,includingChina.Forexample,ifyouhaveapromisethatajob
6、shallbecompleteformonetaryorothercompensation,youhavecreatedanoralcontract.qOralcontractsarelegallyenforceable,althoughtheyarefrequentlysubjecttomisinterpretationandtheycanbedifficulttoproveincourtbecausetheyoftencomedowntoonepersonswordagainsttheother.Moreover,sometypesofcontractsmustbeinwriting,fo
7、rexample,contractsforthepurchaseorsaleofgoodsorservicesininternationalbusiness.USTB刘志伟-UIBEP 版权所有7 7Introduction of Business ContractWritten Business ContractsqInafewsituations,contractsmustbeinwritingtobevalid.UnitedStatelawsoftenrequirewrittencontractsforrealestatetransactionsoragreements.Youneedt
8、ochecktodetermineexactlywhichcontractsmustbeinwriting.Butevenifitsnotlegallyrequired,itsalwaysagoodideatoputbusinessagreementsinwriting,becauseoralcontractscanbedifficultorimpossibletoprove.qWrittencontractsareproducedonpaperorelectronically.Legally,awrittenbusinesscontractiseasiertoupholdthananoral
9、contractbecausethereisareferencefortheagreement.qWithawrittencontract,itseasiertoprovethetermsbetweenthepartiesandeliminateargumentsoverwhosaidwhat.Itsofteneasierforbusinessestorecognizepotentialpointsofcontentioninthelanguagebecausetheagreementisdetailedinwriting.qWhetheryourbusinessisprovidingorof
10、feringservices,youhadbetteruseawrittenbusinesscontractandincludespecificdetailsabouttheagreement.USTB刘志伟-UIBEP 版权所有8 8Introduction of Business ContractOffer and AcceptanceqThemostbasicruleofcontractlawisthatalegalcontractexistswhenonepartymakesanofferandtheotherpartyacceptsit.Formosttypesofcontracts
11、,thiscanbedoneeitherorallyorinwriting.qLetssay,forinstance,youreshoppingaroundforaprintshoptoproducebrochuresforyourbusiness.Oneprintersays(orfaxes,oremails)thathellprint3,000ofyourtwo-colorflyersfor$300.Thisconstituteshisoffer.qIfyoutelltheprintertogoaheadwiththejob,youveacceptedhisoffer.Intheeyeso
12、fthelaw,whenyoutelltheprintertogoaheadyoucreateacontract,whichmeansyoureliableforyoursideofthebargain(inthiscase,thepaymentof$300).Butifyoutelltheprinteryourenotsureandwanttocontinueshoppingaround(ordontevenrespond,forthatmatter),youhaventacceptedtheoffer,andnoagreementhasbeenreached.qButifyoutellth
13、eprintertheoffersoundsgreatexceptthatyouwanttheprintertousethreecolorsinsteadoftwo,nocontracthasbeenmade.Thisisbecauseyouhavenotacceptedalloftheimportanttermsoftheoffer.Youhaveactuallychangedonetermoftheoffer.(Dependingonyourwording,youhaveprobablymadeacounteroffer,whichisdiscussedbelow.)USTB刘志伟-UIB
14、EP 版权所有9 9USTB刘志伟-UIBEP 版权所有1010Introduction of Business ContractThe valid period of an OfferqUnlessanofferincludesastatedexpirationdate,itremainsopenforareasonabletime.Whatsreasonable,ofcourse,isopentointerpretationandwillvarydependingonthetypeofbusinessandtheparticularfactsituation.qToleavenoroomf
15、ordoubtastowhentheotherpartymustmakeadecision,thebestwaytomakeanofferistoincludeanexpirationdate.qIfyouwanttoacceptsomeoneelsesoffer,thebestapproachistodoitassoonaspossible,whiletheresnodoubtthattheofferisstillopen.Keepinmindthatuntilyouaccept,thepersonorcompanywhomadetheoffer-calledtheofferor-mayre
16、vokeoramendtheoffer.USTB刘志伟-UIBEP 版权所有1111Introduction of Business ContractRevoking an OfferqWhoevermakesanoffercanrevokeitaslongasithasntyetbeenaccepted.Thismeansthatifyoumakeanofferandtheotherpartywantssometimetothinkitthrough,ormakesacounterofferwithchangedterms,youcanrevokeyouroriginaloffer.Once
17、theotherpartyaccepts,however,youllhaveabindingagreement.Revocationmusthappenbeforeacceptance.qAnexceptiontothisruleoccursifthepartiesagreethattheofferwillremainopenforastatedperiodoftime.USTB刘志伟-UIBEP 版权所有1212USTB刘志伟-UIBEP 版权所有1313Introduction of Business ContractCounteroffersqOften,whenanofferismad
18、e,theresponsewillbetostartbargaining.Ofcourse,hagglingoverpriceisthemostcommontypeofnegotiatingthatoccursinbusinesssituations.Whenonepartyrespondstoanofferbyproposingsomethingdifferent,thisproposaliscalledacounteroffer.Whenacounterofferismade,thelegalresponsibilitytoaccept,declineormakeanothercounte
19、roffershiftstotheoriginalofferor.qEventhoughacontractisformedonlyiftheacceptingpartyagreestoallsubstantialtermsofanoffer,thisdoesntmeanyoucanrelyoninconsequentialdifferencestovoidacontractlater.USTB刘志伟-UIBEP 版权所有1414USTB刘志伟-UIBEP 版权所有1515Introduction of Business ContractGifts vs.ContractsqThemainimp
20、ortanceofrequiringthingsofvaluetobeexchangedistodifferentiateacontractfromagenerousstatementoraone-sidedpromise,neitherofwhichareenforceablebylaw.qIfafriendoffersyouagiftwithoutaskinganythinginreturn-forinstance,offeringtostopbytohelpyoumoveapileofrocks-thearrangementwouldntcountasacontractbecauseyo
21、udidntgiveorpromiseyourfriendanythingofvalue.Ifyourfriendneverfollowedthroughwithhergift,youwouldnotbeabletoenforceherpromise.qHowever,ifyoupromiseyourfriendyoullhelpherweedhervegetablegardenonSundayinexchangeforherhelpingyoumoverocksonSaturday,acontractexists.USTB刘志伟-UIBEP 版权所有1616Introduction of B
22、usiness ContractPromises vs.ActionqAlthoughtheexchange-of-valuerequirementismetinmostbusinesstransactionsbyanexchangeofpromises(Illpromisetopaymoneyifyoupromisetopaintmybuildingnextmonth),actuallydoingtheworkcanalsosatisfytherule.qIf,forinstance,youleaveyourprinteravoicemailmessagethatyoullpayanextr
23、a$100ifyourbrochuresarecutandstapledwhenyoupickthemup,theprintercancreateabindingcontractbyactuallydoingthecuttingandstapling.Andoncehedoesso,youcantweaseloutofthedealbyclaimingyouchangedyourmind.USTB刘志伟-UIBEP 版权所有1717USTB刘志伟-UIBEP 版权所有1818Normal Steps of Writing a Business ContractvSummarizethebasi
24、ctermsofyouragreementinwriting.Beforemakingabusinesscontract,youllneedfinalagreementonalltheterms.Ifpossible,confirmthesetermswiththeotherpartybyemailorfax.Forcomplicatedbusinesscontractsuchaslicenseagreement,equipmentsalescontract,engineeringprojectcontract,relatedpartiesshouldmeettogethertonegotia
25、tethecommercialcontractandalltechnicalappendices.Step 1USTB刘志伟-UIBEP 版权所有1919Normal Steps of Writing a Business ContractvFindsamplesoftherelevantbusinesscontractonline.Dependingonthetypeofbusinesscontract,theremaybeexistingtemplatesyoucanusethatareontheweb.Youcanfindover1000differenttypesofprofessio
26、nalbusinessagreementsorbusinesscontractinChinese,Englishandsomeotherlanguagesatthiswebsite.Youshouldmodifythesebusinesscontracttemplatestosuityourneedsandspecificterms.Step 1Step 2USTB刘志伟-UIBEP 版权所有2020Normal Steps of Writing a Business ContractvDraftabusinesscontractusingasampleagreementfromStep2or
27、createyourownnewcontractusingclearlanguage.Ifyouhaveasimplebusinesscontract,youmaynotneedasampleagreementitmaybeeasiertomakeyourownasaletteragreementthatissignedbyallparties.Step 1Step 2Step 3USTB刘志伟-UIBEP 版权所有2121Normal Steps of Writing a Business ContractvIncludealltermsandspecificagreementswithin
28、yourbusinesscontract.Readthecontract.ConfirmthatyouhavewrittenabouttheWho,What,When,Where,WhyandHowregardingthetermsofthedeal.Step 1Step 2Step 3Step 4USTB刘志伟-UIBEP 版权所有2222Normal Steps of Writing a Business Contract22vConsider“whatif”scenarios.Checkthatyouhaveaccountedfornon-performance,lateness,and
29、default.Discussanychangesornewtermswiththeotherpartyifapplicable.Step 1Step 2Step 3Step 4Step 5USTB刘志伟-UIBEP 版权所有2323USTB刘志伟-UIBEP 版权所有2424Normal Steps of Writing a Business ContractvIfyouarenotabletosittogethertosigntheagreement,sendtwo(2)originalstotheotherpartywithashortcoverletter.Allpartiesshou
30、ldinitialeachpageoftheagreement,andsignanddatethelastpage.Followuptogetthesignedcontractbackquickly.Aftertheotherpartyhasinitialedandsignedthecontracts,signthemandsendoneoriginalbacktothemfortheirrecords.Completeyoursideofthedealandenforcetheagreement.Step 1Step 2Step 3Step 4Step 5Step 6Step 72525US
31、TB刘志伟-UIBEP 版权所有Recitals of a biz contractRecitals are the whereas clauses normally precede the body of a contract.They provide a simple way to bring the contracts reader(party,judge or jury)up to speed on what the contract is about,who the parties are,why they are signing the contract,etc.The first
32、 paragraph in the body of the contract can incorporate the recitals by reference and state that they are true and correct.This will avoid a later argument as to whether or not the recitals are a legally binding part of the contract.2626USTB刘志伟-UIBEP 版权所有DefinitionsvIn order to avoid misunderstanding
33、 of different interpretation of certain terms and words used in a contract,normally such terms and words shall be defined clearly in the contract.For example.合同文本2727USTB刘志伟-UIBEP 版权所有2828USTB刘志伟-UIBEP 版权所有Some features of Biz ContractStrictness合同中,每一个词的意义都非常明确,决不含歧义。合同撰写者往往选择词义范围较小,语义较为明确的词。在其他文体中常
34、见到的表示程度或频率的词如“often”,“always”,“very”在合同英语中几乎不用,因为这些词表示的程度或频率不确切。甚至连定冠词“the”也常常被限定范围较小的“such”所代替。2929USTB刘志伟-UIBEP 版权所有Some features of Biz ContractShall but not willv根据Longman Dictionary of Contemporary English 的解释,shall应解释为(formal or old-fashioned)used in official documents to show a law,command,ob
35、ligation,compulsion。可见shall 的这一用法是较古老或者较正式的,体现了合同条款内含的法律的威严性和约束性。v凡是表示强制(compulsion)、权利(rights)、责任(liability)或义务(obligation)时,均不能用will 或should 取代shall。这一用法的shall 的主语一般以第三人称居多,且此时shall必须重读。shall 这一用法的否定形式shall not 表示“禁止”或“不得”。例如:(see note)3030USTB刘志伟-UIBEP 版权所有3131USTB刘志伟-UIBEP 版权所有Some features of B
36、iz Contract近义词和成对词by and between(由),for and in consideration of(考虑到,鉴于),for and on behalf of(为了,代表),in full force and effect(生效),furnish and provide(提供),make and enter into(达成),release and discharge(弃权,让渡),fulfill or perform(履行),procure and ensure(保证和确保),force and effect(效力),right and interest(权益),p
37、ower and authority(权利),covenants and agreements(契约),terms and conditions(条款),customs fees and duties(关税),losses and damages(丢失及损毁),complaints and claims(投诉及索赔),null and void(失效,无效),sole and exclusive(唯一且排他的),final and conclusive(最终及具决定性的),transferable or assignable(可转让的)等。(see note)3232USTB刘志伟-UIBEP
38、 版权所有Some features of Biz Contract长句子合同的作用在于明确陈述和规定不同当事人在有关活动中的权利和义务,因此从句式的使用上来看,合同一般采用陈述句,而不使用疑问句、祈使句和感叹句。完整的长句的使用可以准确界定这种权利和义务关系,排除被曲解或误解的可能性。合同文件具有条理性、周密性。从语用的角度来看,每一种情况或条件、或要求、或断定都要顾及到种种可能发生的情况,种种设定,种种意外,种种解决办法。“一个句子常常要照顾到千变万化的情况,自然就长。长句排列组织不好,就容易引起混乱、误解、歧义”。商务合同具有句式讲究、用词严谨、条理清晰、长而不乱、逻辑性强的特点。例如:
39、See note USTB刘志伟-UIBEP 版权所有3333Useful Tips for Making Business ContractsGeneral tips for making business contractqMakesureallpartynamesareaccurate.Statethecorrectlegalnamesofthepartiesinthefirstparagraph.Asobviousasthisis,itisoneofthemostcommonproblemsincontracts.Forindividuals,includefullfirstandla
40、stname,andmiddleinitialsifavailable,andotheridentifyinginformation,ifappropriate,suchasJr.,M.D.,etc.Forcorporations,checkwiththelocalauthoritywhereincorporated.qIdentifythepartiesbynicknames.Givingordefiningeachpartyanicknameinthefirstparagraphwillmakethecontracteasiertoread.Forexample,ShanghaiBaoSh
41、anIron&SteelCorporationLimitedwouldbenicknamedas“Baosteel”;BankofChinawouldbenicknamed“BOC”qBecarefulwhenusinglegaltermsfornicknames.DonotuseContractorasanicknameunlessthatpartyislegallyacontractor.DonotuseAgentunlessyouintendforthatpartytobeanagent,andifyoudo,thenyouhadbetterspecifythescopeofauthor
42、ityandotheragencyissuestoavoidfuturedisagreements.USTB刘志伟-UIBEP 版权所有3434Useful Tips for Making Business ContractsGeneral tips for making business contractqIncludeablankforthedateinthefirstparagraph.Puttingthedateinthefirstparagraphmakesiteasytofindafterthecontractissigned.Italsomakesiteasytodescribe
43、thecontractinotherdocumentsinapreciseway,suchastheOctober8,2012,ContractforSaleofSteelRollingMill.qIncludebackground.Recitalsarethewhereasclausesthatprecedethebodyofacontract.Theyprovideasimplewaytobringthecontractsreader(party,judgeorjury)uptospeedonwhatthecontractisabout,whothepartiesare,whytheyar
44、esigningthecontract,etc.Thefirstparagraphinthebodyofthecontractcanincorporatetherecitalsbyreferenceandstatethattheyaretrueandcorrect.Thiswillavoidalaterargumentastowhetherornottherecitalsarealegallybindingpartofthecontract.qOutlinethecontractbywritingoutandunderliningparagraphheadingsintheirlogicalo
45、rder.Theparagraphsshouldflowinlogical,organizedfashion.Itisnotnecessarytowritethemallatonce;youcanwritethemasyouthinkofthem.Trytogrouprelatedconceptsinthesameparagraphsorinadjacentparagraphs.USTB刘志伟-UIBEP 版权所有3535Useful Tips for Making Business ContractsGeneral tips for making business contractqComp
46、leteeachparagraphbywritingthecontracttermsthatapplytothatparagraph.Thisissimple.Youlearnedthisinelementaryschool.Justexplaininwordswhatthepartiesagreetodoornottodoparagraphbyparagraph.qKeepapadathandtorememberclausestoadd.Itisnormaltothinkofadditionalclauses,wordingandissueswhilewritingacontract.Jot
47、thesedownonapadasyouwrite;theyareeasilyforgotten.Alsokeepyouroutlineandotherformsinfrontofyouasyouwrite,andcheckoffitemsasyouwritethem.qRepeatyourselfonlywhenrepetitionisnecessarytoimproveclarity.Ambiguityiscreatedbysayingthesamethingmorethanonce;itisalmostimpossibletosayittwicewithoutcreatingambigu
48、ity.Onlyiftheconceptisadifficultoneshouldyouwriteitinmorethanoneway.Inaddition,ifyouuseanexampletoclarifyadifficultconceptorformula,besurethatallpossiblemeaningsareconsideredandthattheexampleisaccurateandconsistentwiththeconceptasworded.qUSTB刘志伟-UIBEP 版权所有3636Useful Tips for Making Business Contract
49、sTips for Drafting Business Contract qWrite Clearly.Ambiguouslanguageinacontractcanleadtomisunderstandings,delays,frustrationandevenlitigation.Makesurethatbothpartiesresponsibilities,rightsandobligationsareclearlyoutlined.qDraft Complete Contracts.Manycontractsfailorcreateconfusionbecausetheyareinco
50、mplete.Theomissionofimportanttermsorexpectationscanleadpartiestoassumeincorrectlythatthetermsareunderstoodorimplied.Makesurethatallkeystatementsorrepresentationsfrombothpartiesarespelledoutclearly.qLook at Sample Contracts and Forms.Thebestwaytobegindraftingacontractistolookatseveralsampleformsthata