When a manager makes up a contract he must not think only of his one-side interest. He must think in terms of common interest with his counterpart. Only then will he prove loyal to his partner. In case of a contingency the Seller must notify the Buyers of a force majeure right away. If it is done in due time the Buyer may take immediate action to protect his interest.

A force majeure must be a proven fact. The Seller is to submit to the Buyer a written confirmation issued by the Chamber of Commerce to this effect. The duration of a force majeure is, as a rule, 4 or 6 months. After that the Buyer has a right to cancel the contract. The Seller in this case has no right to claim any compensation for his losses.

Claims and sanctions. A contract defines rights and obligations of the parties involved. Most often the Buyer makes quality and quantity claims on the Seller. The cause for complaint may be poor quality, breakage, damage, short weight, leakage, etc. The Buyer must write a statement of claim and mail it to the Seller together with the supporting documents: Bill of Lading, Airway and Railway Bill, Survey Report, Quality Certificate are documentary evidence. Drawings, photos, samples are enclosed as proofs of claims. The date of a complaint is the date on which it is mailed.

Claims can be lodged during a certain period of time, which is usually fixed in a contract. During the claim period the Seller is to enquire into the case and communicate his reply. He either meets the claim or declines it. If a claim has a legitimate ground behind it the parties try to settle it amicably. The Seller in turn is entitled to make a claim on his counterpart if the Buyer fails to meet his contractual obligations. The Seller may inflict penalties on the Buyer if there is a default in payment. Financially, legitimate claims are in large part settled by debit or credit notes [10, P. 12 – 28].

1.4. Types of contracts. Abbreviations

In order to speed up the preparation of contract documents and to minimise possibility of errors in them, a unified standardised form of contract documents, the Master Pattern for Contract Documents, has been developed. It establishes principles and regulations for the construction of standardised forms of documents used in foreign trade, like Supplement to contract, Order and Order confirmation.

Supplement to contract is a business document which is an integral part of the contract, containing amendments or additions to the previously agreed contract conditions. The supplement should also be agreed on and signed by both the exporter and the importer.

Order is a business document presenting the importer’s offer for dealing which contains specific conditions of a future transaction.

Order Confirmation is a business document presenting the exporter’s message containing unclaused acceptance of the order conditions. The Master pattern has also been accepted as a basis for standardised forms of enquiries and offers, used at pre-contract stages of dealing [5, P.131 – 132].

Different firms and organisations trading regularly, work out standardised forms of contracts for typical deals. Such standardised contracts are printed and include typical rights and duties of the contracting sides in selling and buying some goods and services. There are special columns for the names of the Buyer and Seller, names of goods, their quantity, prices and delivery terms. In case of declining or adding some terms, people use supplementary columns in a contract form.

Standardised forms of export and import deals differ greatly and it makes them two general types of contracts [13, P.146]. Thus, there are export and import contracts. They reflect different positions of buyers and sellers in trading. Contracts in import trade are called orders, and their submission warrancy, and delivery terms, as well as sanctions are much harder towards the sellers than those ones in export trade. Standardised forms of import contracts are sent to potential buyers before getting commercial proposals and, actually, before striking a deal. The languages of contracts are agreed upon on the both sides. It goes without saying that information and style are kept the same not depending on the language of contract.

As textual varieties, contracts are divided into administrative-managerial, financial-economical, advertising, scientific-technical, and artistic-publicational contracts*. Functional spheres of their circulation can be easily guessed from names of contract types in this classification, and are the subject of economic, rather than linguistic, study.

Contracts may be differentiated by the subject of a deal. There are export contracts for the sale of oil products, machinery tools, grain, timber, the supply of goods, etc. Orders in import trade deal with ordering and purchasing goods. They are often supported with requests, remindings, verifications of different terms, guarantee and waving inspection letters, and many others.

Goods in international trade are transported with the help of multimodal (door-to-door) shipment. In contracts delivery and acceptance terms are marked with the International Commercial Terms (Incoterms) [10, P.16]. So, contracts can be classified in accordance with the way of delivery. Most of Incoterms are represented as abbreviations.

The usage of abbreviations, conventional symbols and contractions is typical of all kinds of documents. Abbreviations are abundant, and there are special dictionaries to decode them. They serve as signs of the code supposed to be known only to the “initiated” [3, P.316].

On the whole, there are 14 official Incoterms of deliverance. They denote:

1. The point of deliverance. EX Works means that the seller’s only responsibility is to make the goods available at his premises. EX Ship means that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contract. EX Quay means that the seller makes the goods available to the buyer on the quay at the destination named in the sales contract.

2. The way of deliverance. FOB means Free on Board. The goods are placed on board a ship by the seller at a port of shipment named in the sales contract. FAS means Free Alongside Ship. That means that goods should be placed alongside the ship to fulfil the seller’s obligations. FOR / FOT mean Free on Rail / Free on Truck. Truck here relates to the railway wagons, and that makes these abbreviations synonymous. FOB Airport is based on the same main principle as the ordinary FOB term. The seller fulfils his obligations by delivering the goods to the air carrier at the airport of departure.

3. Payment terms. C & F means Cost and Fright. The seller must pay the costs and fright necessary to bring the goods to the named destination, but the risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. CIF means Cost, Insurance and Fright. This term is basically the same as C & F but with the addition that the seller has to procure marine insurance against the risk of loss or damage to the goods during the carriage.