BUSINESS ENGLISH

CONTRACT AGREEMENT
Supplier: Nybo Furniture Company
Customer: Regional Bank Saltillo

Contract Agreement:

1. Definition of Terms
a. “Products” refers to all those items listed on the price listing sheet and any item
supplied by Nybo Furniture Company hereinafter.
b. “Supplier” refers to Nybo Furniture Company
c. “Buyer” refers to Regional Bank Saltillo
d. “Stock” refers to the items purchased by the buyer.

2. Duration of the Contract

a. The contract enters into effect on the date it is signed by each party and has a
fixed term ending on December 31st, 2016. This contract may be altered at any
time by the supplier to suit availability of product and shipment.
b. The contract can be terminated at any time by the supplier and any deals made
heretofore become null and void, at no extra cost to the supplier. The supplier is
not liable to pay any compensation to the buyer.

3. Delivery
a. Once the stock has left the supplier’s warehouse, the supplier relinquishes
responsibility hereinafter and the buyer assumes full responsibility of the stock
and is liable to pay for any damage caused during the loading, transportation and
unloading processes. Any damage to the products cannot be held accountable on
behalf of the supplier.
b. One condition is that the supplier must receive payment in full before any items
can be dispatched. If the supplier has not received the payment in full, the supplier
is permitted to hold the items in its warehouse without release.

4. Price
a. The price agreement between the two parties, supplier and buyer, is fixed for six
months and hereinafter renegotiated by the supplier and the buyer. The supplier
and buyer will discuss any additional costs proposed by the supplier.
b. Defaulting on a payment is subject to a penalty of 25% of the product cost. If the
supplier is unable to fulfill an order, the supplier is subject to a penalty of 25% of
the product cost.
c. The purchase price for the relevant office furniture delivered is to be fulfilled and
paid within one day from the date of invoice for the delivery.

Nybo Furniture Company (Supplier) Regional Bank Saltillo (Buyer)

_____________________________ _____________________________

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 3rd LEVEL
BUSINESS ENGLISH
LESSON 4

*Activity #1: Now that you have read the contract, match the vocabulary and definitions
1. NULL AND VOID ( ) A. in the interest of (person, etc.); for (person, etc.)
2. ON BEHALF OF ( ) B. invalid; without legal force; not binding
3. HEREINAFTER ( ) C. to cause
4. TO BE SUBJECT TO ( ) D. a particular statement or requirement in a contract
5. HERETOFORE ( ) E. in the following part (of this document, etc.)
6. CONDITION ( ) F. up until now; until the present; before this
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7. TO FULFILL ( ) G. when a customer is unable to pay an agreed price

8. LIABLE ( ) H. an arrangement between two or more people, etc.
9. PARTY ( ) I. legally responsible for causing damage or injury
10. DEFAULT ( ) J. the person or company forming one side of an agreement
11. AGREEMENT ( ) K. to satisfy a condition; to complete the required task
12. TO RELINQUISH ( ) L. to adjust
13. TO SUIT ( ) M. to surrender; to renounce

*Activity #2: Based on how “ed” sounds in these verbs, choose “T / D / ID”
T D ID
1. LISTED: ______________ ______________ ______________
2. SUPPLIED: ______________ ______________ ______________
3. PURCHASED: ______________ ______________ ______________
4. SIGNED: ______________ ______________ ______________
5. FIXED: ______________ ______________ ______________
6. ALTERED: ______________ ______________ ______________
7. TERMINATED: ______________ ______________ ______________
8. CAUSED: ______________ ______________ ______________
9. DISPATCHED: ______________ ______________ ______________
10. RECEIVED: ______________ ______________ ______________
11. PERMITTED: ______________ ______________ ______________
12. RENEGOTIATED: ______________ ______________ ______________
13. PROPOSED: ______________ ______________ ______________
14. DELIVERED: ______________ ______________ ______________

*Activity #3: Speaking

Have a conversation with your teacher… Why do you think written agreements are important?
What are some contracts/agreements that you have signed? Have you ever done something on
behalf of someone else?

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