Insurance and other documents

Among insurance documents there are insurance policies and insurance certificates. There are certain difference between the two but it is very subtle and sometimes, besides, they are used interchangeably. These documents state what goods are insured, in whose name they are insured, against what risks, for what amount, at what premium and j»o on.

Here is a part of specimen insurance policy:

Ingosstrakh

Insurance Policy № 338

This is to certify the insurance cover to the order of Chemico, Moscow, of: Chemicals ST, gross weight packed 5100 kgs, net weight 5000 kgs in 100 plastic bags in favour of: Petro Co Ltd. Liverpool for the amount of: 857,000.00 English pounds sterling (eight hundred and seventy five thousand English pounds sterling ).

Shipped from: Riga to Liverpool on board vessel: Alexander Pushkin on: 20 November, 1994 against: war, fire and marine risks premium: as agreed

Besides insurance documents, transport documents, commercial invoices some other documents may be involved in business transactions in accordance with contracts. They are:

• Import/export licences

• Customs declarations

• Consular invoices

• Veterinary certificates

• Phvtosanitarv certificates and others.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

1. Complete as in the text:

   1. Among insurance documents there are...

   2. There is a certain difference...

   3. These documents state...

2. Translate into Ukrainian: The insurance cover

To the order of Chemico

In favour of Petro Co.

For the amount of 4 million pounds

To insure the goods against war, fire and marine risks

To pay a premium as agreed

3. Translate into English: Ліцензія ка імпорт Митна декларація Консульський рахунок Санітарний сертифікат на рослини Ветеринарний сертифікат

Lesson 5

BANK GUARANTEES

Very often contracts stipulate that the buyers are to provide a first-class bank guarantee to avoid failures in payment if contracts envisage payment on a collection basis, on credit etc. If the chemicals had been bought on such terms a specimen bank guarantee might look like this:

Midland Bank Limited

London *

Guarantee No 1159 - Contract No 32-1- Chemico Co., Moscow

We hereby irrevocably and unconditionally undertake to pay to Chemico Co., Moscow the sum of GBP 1750,000.00 ( one million seven hundred andfifty thousand English pounds sterling ) if this amount is not paid at maturity by Petro Co., Liverpool, England for the shipment of 10 000 kgh of Chemicals ST under the above Contract made between Chemico Co., Moscow and Petro Co., Liverpool. Your simple claim in writing should certify that the Buyers have failed to make due payment.

The amount shall be credited to the account indicated by you, not later than 30 days after the bill of lading date against the commercial invoice and shipping documents stipulated by the Contract.

This letter of guarantee is valid until 1 April, 1995 if the documents have been presented within the validity of this guarantee.

Expenses in connection with the opening and utilization of this letter of guarantee are to be borne by the National Bank, Liverpool.

Youth faithfully,

p.p. Midland Bank Limited.

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

1. Translate into Ukrainian:

   1. Sometimes the buyers are to provide a first-class bank guarantee.

   2. The seller wants to avoid failures in payment.

   3. Bank guarantees are often required when payment on a collection basis is stipulated by the contract.

   4. The same is true about payment on credit terms.

   5. The specimen bank guarantee might be as follows...

   6. We irrevocably undertake to pay... at maturity.

   7. You should send a claim in writing.

   8. The money shall be credited to your account.

   9. This letter of guarantee is valid during this period.

   10. The expenses shall be paid by the opener.

2. Translate the specimen bank guarantee into Ukrainian. Ill Say:

when bank guarantees are utilized who bears the expenses involved

THEME: COMMUNICATION IN BUSINESS

Lesson 1

LETTERS

Business letters sent by phone or by fax can be devoted to various subjects. Rather often after transactions are executed, payment problems arise and letters are sent then.

Here are three specimen letters sent by the sellers after the buyers have failed to pay for the goods received:

Crowley and Bullock Ltd.
24 Hartley Lane
Real
Kent
England	18 April, 20..
Dear Sirs,
We enclose a statement of account up to 30th March, from which yon will	see that vou owe us 2,850, 00 for goods delivered
in February.
As vou know, our conditions of sale stipulate pavment within thirty days
An earlv settlement would be appreciated.
Yours faithfully,
Lewis Carol
for Chief Accountant

Crowley and Bullock Ltd. ' 2^nd May, 20.

Dear Sirs,

We have had no reply concerning the statement of account sent to you on 18^th April.

We enclose a duplicate of our letter and the statement, and would urge you to give the matter vour earliest attention. Yours faithfully,

Chief Account

Crowley and Bullock Ltd. 21^s' June, 20.

Dear Sirs,

We have not yet received payment of your outstanding balance of 2,850,00. Nor have we received acknowledgement of our letters of 18^th April and 2^ May.

When we telephoned on 23^rd May we were assured by your Chief Buyer, Mr. K. Innis that a cheque would be forwarded to us that day.

We should like to draw your attention to the fact that you have considerably exceeded the term of credit usually allowed. We must therefore insist on receiving payment by 28 June. Failing this, we shall have no alternative but to refer the matter to our solicitors. Yours faithfully, Andrew Fitton

Company Secretary

1. to devote

to be devoted to smth.

2. to execute

to execute a transaction to execute an order/ a contract execution

3. to arise (arose, arisen)

4. to fail

6. to tail to ship to fail to deliver failing this failure

to enclose Г -

to enclose smth. With a letter enclosure

8. statement of account

9. to owe

to owe smth. to smb.

8. to stipulate

9. to settle settlement

10. eo appreciate

Your early settlement would be питання.

Your early reply would be* appreciated

8. duplicate in duplicate

9. to urge

We would urge you to give the matter your attention.

8. outstanding outstanding payment

9. balance

10. to acknowledge acknowledgement

11. to assure

12. to forward syn. to send

13. to draw

to draw smb's attention to smbVsmth.

8. to exceed

9. to allow

to allow a discount/ a credit/ the term of credit

8. to insist

to insist on smth.

8. to refer

to refer the matter to arbitration

8. solicitor

не відвантажити не поставити

у противному випадку 511

невдача

додавати

додавати щось до листа додаток

витяг за рахунком мати заборгованість заборгувати щось комусь вказувати, визначати урегулювати

урегулювання, розрахунки цінувати, оцінювати

Ми будемо вдячні, якщо ви урегулюєте appreciated, це

Ми будемо вдячні за вашу скорішу

відповідь, дублікат

у двох примірниках наполягати

Ми настійно просимо вас приділити цьому питанню максимум уваги, невиконаний, знаменитий недоплата залишок визнавати визнання переконувати направляти надсилати тягнути

звертати чиюсь увагу на когось, щось.

перевищувати

дозволяти, надавати

надавати знижки/ кредит/

кредит на певний термін

наполягати

наполягати на чомусь

відправляти; посилати

направляти справу до арбітражу

і

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

L Find the answers in the introduction:

1. How are business letters sent?

2. Are many business letters devoted to payment problems?

3. How many specimen letters are given there?

4. To what problem(s) were they devoted?

II. Complete the sentences, as in the letters:

1. We enclose a statement of account from which you will see that you owe...

2. As you known our conditions of sale stipulate...

3. An early statement would...

4. We had no reply'...

5. We enclose a duplicate...

6. We have not yet received...

7. Nor have we received... -----

адвокат, захисн

8. We were assured by your jChief Buyer... ; ii . .......

9. We should like to draw your attention to the fact that you have considerably exceeded... - _;

10. We must therefore insist...

11. Failing this we shall have no alternative..!

///. Translate the letters and answer the questions:

1. Was Crowley and Bullock Ltd. A buyer or a seller?

2. How much did they owe to the offer company?

3. When were they to pay?

4. Did they answer the first letter?

5. When did they promise to pay during the telephone conversation?

6. Did they keep their promise?

7. What was the deadline stated by Mr. Fitton?

8. What measures did he say he would take if Crowley and Bullock Ltd. Did not pay then?

9. What was Mr. Fitton's position in the company?

10. Who signed the previous two letters?

11. Why do you think various people were involved into this problem?

Lesson 2 TELEXES

Telex communication is rather often used in business. Here are a few telex messages and some explanatory notes:

1.

90 17 37 PNITA

your a/c credited tt

nine hundred and eighty pounds

sterling

national bank of japan

It is an advice of a bank to their customer that the sum of GBP 980 has been paid into his account by telegraphic transfer.

2.

36 6 41 TRJMP cannot supply item no 432 on order 5871 but item no 435 available please confirm acceptance satex rome

In this telex Satex of Rome are telling their customer that they cannot supply the sweaters (item no 432) under their order 5871, and want to know if they can replace them with sweaters of catalogue number 435. 3.

28 51 36 MLRCG no 435 acceptable only on same terms as no 432 namely 33 percent disc cif f. lynch birmingham

It is the reply of the customer (Messrs. F. Lynch, Birmingham, England). The customer accepts the alternative but only on the condition that the terms of the contract are not changed. 4.

611531 DMRMB your order 901 shipped clean on board ss orient ' sailing 6 may our agents forwarding documents to northern city bank letter of confirmation follows lee builders hong kong

This telex is from the sellers (Lee Builders Ltd., Hong Kong) advising their customer that their order is being shipped to them.

I

vocabulary Study

a/c = account

2.

your a/c credited = your account is credited tt = telegraphic transfer, by telegraphic transfer advice customer cannot supply = ■MrtfrgannoVsuppiy

"рахунок

телеграфне переведення телеграфним переведенням повідомлення, авізо клієнт ^минемн^^

6. but item no 435 available =

but item no 435 is available

6. to confirm

7. acceptance

8. sweater

9. no 435 acceptable = no 435 is acceptable

10. on same terms = on the same terms

11. disc = discount

12. your order 901 shipped =

your order 901 is shipped

6. ss = steamship, ship

7. orient = in the orient

8. sailing

9. our agents forwarding = our agents are forwarding

але позицію номер 435 маємо в наявності

підтверджувати приймання продукції светр

позиція 435 припустима на тих же умовах знижка

ваше замовлення № 90 відвантажено

судно на схід відправлення наш агент направляє

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

I. Answer the following questions:

1. Are all the telexes connected with each other?

2. Which telexes are connected with each other?

3. About what payment did the first telex speak?

4. Did the second telex speak about payment too?

5. Did it speak about some replacement of the goods ordered?

6. Who were the sellers?

7. Is it clear who the customer was?

8. Did the customer agree to the replacement?

9. On what condition did he agree to that?

10. What information does the fourth telex contain?

w

•1

11• Give the full words for the following contractions, used in telexes: а/с disc ss tt

Lesson 3

TELEPHONE CONVERSATION

Mr. Weston:

Secretary:

Mr, Weston. Mr. Marsh: Secretary:

Mr. Marsh: Secretary: Mr. Marsh: Mr. Weston:

Mr. Marsh: Mr. Weston: Mr. Marsh: Mr. Weston:

Mr. Marsh:

Mr. Weston: Mr. Marsh:

Mr. Weston:

Mr. Marsh:

Mr. Weston: Mr. Marsh:

Here is a specimen telephone conversation between two businessmen with a secretary answering the call first:

Secretary: Good morning! Consolidated industries. Can I help you?

Mr. Weston: Good morning! I'd like to speak to Mr. James Marsh, please.

Secretary: Who 's calling, please

My'name is Weston. I'm from Plant Installations Limited/7

Manchester. — . . '

Will you hold the line a moment, Mr. Weston? I'll see if Mr. March is free. Yes, thank you. Hello, Marsh speaking.

Oh, hello, Mr. Marsh. I've got Mr. Weston from Plant Installations Limited on the line. Can you speak to him now? Oh, yes. Thank you. Put him through, please. You are through now, Mr. Weston. Hello, Mr. Weston. What can I do for you?

Good morning, Mr.'Marsh. I'm phoning to say we have problems with the spare parts you sent us last week. Do you mean those sent under Contract 106? You are quite right.

And what are the problems? What's wrong with the spares? Well, you See the first problem is that the spares arrived with a two week's delay.

Yes, you remember we wrote to you about the delay. It wasn't our fault. You should take that into account. Still the contract stipulated the damages for delays. Mr. Weston, I've got an idea. Next week I'm coming to London and I'll contact you. I hope we shall come to an agreement.

Very good. Then we shall discuss both problems. By the way when exactly are you coming?

On Tuesday and I'll ring vou up as soon as I come to the hotel.

Good. I'm looking forward to seeing you. Good-bye. Good-bye. See vou on Tuesday.

Vocabulary Study II. Complete as in the text:

1. Auditors are usually independent certified accountants who.

2. These reviews are called...They are usually performed at...

3. Auditors are employed

4. Not so many years ago the presence of an auditor suggested...

5. Currently, however, outside audits are...

6. Auditors see that current transactions...

7. Their duty is to reduce...

8. Then they are usually requested to propose solutions...

9. Thus auditors review...

III. Sum up what the text said about:

Auditors

Auditor's report •

Auditor's report of Johnson and Co.

1. conversation syn. talk

2. call

to make a telephone call to call

some telephone,

to ring up

3. to hold

to hold the line

4. line

I've got Mr. Marsh on the line

5. to put smb. Through

6. spare

7. spare parts

delay _

8. fault

9. to take into account

10. damages

11. stipulate

тримати

не вішати трубку

телефонна лінія

На лінії Містер Маш.

(дзвонить містер Маш).

з'єднувати когось по

телефону

запасний

запчастини

затримка

провина

прийняти до уваги

неустойка

бесіда

оговорювати

дзвоник

подзвонити

дзвонити

Для самостійного опрацювання з цієї теми потрібно виконати наступні завдання:

I. Find the English equivalents in the conversations:

3. Добрий ранок. Чим можу допомогти?

4. Я б хотів поговорити з містером Машем.

5. Хто його кличе?

6. Не кладіть трубку.

7. Я довідуюся чи він вільний.

8. Говоре Маш.

9. Вам телефонує містер Вестон.

10. Ви можете поговорити з ним зараз?

11. З'єднайте мене з ним.

12. Містер Вестон, я вас з'єднаю.

11.Здравствуйте, містер Вестон. Чим можу бути корисний?

13. Comvlete thé sentences, as in the conversation:

1. I'm phoning to say we have problems with...

2. Do you mean those sent...

3. What's wrong with...

4. Well, you see, the first problem is that the spares arrived with...

5. You remember we wrote to you about...

6. It wasn't our...

7. You should take that into...

8. Still the contract stipulated...

9. Next week і am coming to London and... 10.1 hope we shall come to an...

   2. By the way when exactly... 12.On Tuesday and I'll ring... 13.I'm looking forward to...

   3. Answer the following questions:

      1. What problems made Mr. Weston make the telephone call?

      2. Did Mr. Marsh admit it was their fault that the goods were not shipped on time?

      3. Did Mr. Weston mention that damages should be paid to him?

      4. Did they settle the problem during the conversation?

      5. Where and when did they decide to discuss the problem?

      6. Whose initiative was it?

   4. Reproduce the conversations: Between Mr. Weston and the secretary Between Mr. Marsh and the secretary Between Mr. Weston and Mr. Marsh

   5. Act out similar conversations:

you speak with the secretary of Brown and Co.

you speak with Mr. Smith of Brown and Co. about a one week delay of shipment

2. 1. This is Petrov. Petrov speaking. It's Petrov.

   Underline the sentence you like best in every group of synonymous

sentences:

2. Could I speak tp Mr.Brown? Can I speak to Mr.Brown? I'd like to speak to Mr.Brown.

3. Please, hold the line. Could you hold the line? Could you hold on? Will you hold on? Would you like-to hold?

Lesson 4

BUSINESS TALKS

Here is a specimen business talk:

Mr. Weston: Oh, Mr. Marsh, I'm so very glad to see you. Did you have a nice trip?

I'm glad to see you too. The trip was quite smooth. And I hope our talk will be very smooth too.

Well, than let's get down to business. I propose to discuss the second problem and then we shall speak about the delay. Maybe we shall settle both at that time.

Agreed. And what is the second problem?

Mr. Marsh, you see, when the spares arrived we found that the packaging was all wrong. You packed them in plastic boxes instead of the metal containers we specified in the contract. But did they come safe?

Unfortunately.50 pieces were damaged severely and 30 pieces were slightly damaged.

I'm awfully sorry about it. May, I have a paper testifying to the damage. It is important for our packers. But as to the damage we'll certainly rectify the situation. I hope so and what do you suggest? I offer to ship the replacement by air this week. And at whose expense will it be done?

We'll certainly cover all the transportation expenses and insurance. Then if you send the replacement by air this week and they safely reach us we shall forget about the delay or the first problem. Thank you. I think it's kind of you to make this suggestion. And one more thing. Please send me a fax to confirm the shipment. Good. I'll see to it. The fax will be sent the same day the spares will be shipped from the airport.

Thank you for cooperation and I hope in future we'll have no problems at all.

Mr. Marsh:

Mr. Weston:

Mr. Marsh: Mr. Weston:

Mr. Marsh: Mr. Weston:

Mr. Marsh:

Mr. Weston: Mr. Marsh: Mr. Weston: Mr. Marsh: Mr. Weston:

Mr. Marsh: Mr. Weston: Mr. Marsh:

Mr. Weston:

Mr. Marsh: Mr. Weston:

I hope so. Thank you again and good-bye. Good-bye and happy journey back home.