Since a writer of a business letter has a unified form in front of him / her, this person follows a set pattern while doing it. All the writer’s attention is focused on major information and data which represent the subject of the document. In this way, an addressee can decode the subject-matter faster, because a document is written in the standardised form.
Moreover, if business documents are drawn up in a unified and, to some extent, simplified way, it takes less money spending and saves time of the dealing sides, and shortens the time of business procedure as well. A special branch of English linguistics, - business English, - is devoted to the purpose of simplifying of business making.
Written business English has got certain traits and problems of its usage, not only for foreigners, but for English-speaking business people.
1.2. Theoretical problems of the language of documents
Knowledge of drawing up business correspondence is equal to communicating with people in a businesslike manner [7, P.4]. A person should know rules of documents’ writing to make one’s business effective and profitable. All of them are united under the notion of style.
A style of the language is a system of interrelated language means which serve a definite aim in communication [3, P.33]. As has already been written, the style can be formal (business written English) and informal (spoken English). The difference of formal and informal English is a matter of style and attitude of people to each other. However, it is not an easy matter to draw an exact line between formal and informal English [8, P.28], and that is the first, and the most important thing to be clarified in this paper.
English of business correspondence possesses some important qualities, common for formal style of English as well.
The language of business correspondence is very bookish and is remarkable for the usage of larger and more exact vocabulary, in comparison with informal style of communication. Sentences in documents are longer and their clauses are grammatically fitted together more carefully, which means a lot of practise for a person who draws up a contract. It is generally considered and expected that real business people, experts in their field of activity, should enjoy the preciseness and careful grammatical construction. It does not mean, of course, that business people must communicate orally in formal business style.
Formal business correspondence should be more impersonal. It should not emphasise the individuality of the writer, and takes little account of the personal qualities of people who are going to make use of it. Thus, the speaker should not refer directly to himself or his readers, but avoid the pronouns I, we, you, and it may also be of a difficulty for a person.
One more problem is that formal English lacks force and vividness. The fact that it is formal implies its great dependence on arbitrary conventions, rather than on natural speech habits [8, P.29]. That is why it is so hard for non-business people to keep concentrating their attention on contents of documents all the time, as their attention is diverted by intricate language use. Some of them will find their long and complicated sentences rather confusing. Words of formal English may sound nice, but their meaning is often hard to get through. Very often a person must read something all over again to make sure what it means.
e.g. This stipulation being of the essence of the contract, default by the buyers shall entitle the Sellers to load and ship the goods as convenient to themselves to any of the ports named in this contract and Buyers shall take delivery accordingly. (Extract from a standard form of contract for the sale of timber through broker in the U.K.) [6, P.229]
Another chief problem to remember about business correspondence is that it will be read by busy people who usually have no interest in either one’s personality or his / her problems [8, P.280]. Bearing in mind that one should not waste anybody’s time and try to gain anything by impressing your employers, a person uses formal English to avoid unnecessary details about matters handled, replacing them by strict routine. To be as clear and brief as possible without sacrificing clarity is a common trait of any business document.
e.g. The time of delivery of the Turbine Plant against the above contract expires on the 1st July.
Please inform us by return of post of the progress of manufacture of the Turbine [6, P.260].
Anyway, in some important business correspondence we may find deviations from what is called official English of the business world. For example, if a person wants to get a job or to sign a contract, to make a sale or to ask somebody for special advice, he / she is likely to want to make a definite impression on the interlocutor, like in the example:
e.g. So I spent my green years first in East Germany that influenced on me greatly (they say I look like a German, joke), then we moved to live in Siberia where I played an ice hockey, entered the Secondary School and fell in love with British rock music. [4, P.35]
This person was applying for a journalist and tried to show his writing skills.
It does not mean, however, that a person in charge will be much concerned about one’s personality without knowing a way of using it. If a person is starting business correspondence on an important matter, the first thing to do is to consider it all carefully from the other person’s probable viewpoint, and to go on making business in the same way.
These are some of the most frequent problems in the theory of business correspondence which can concern a person who is likely to get involved in a business undertaking.
1.3. The structure of contracts and their essential clauses
Contract is a business document presenting an agreement for the delivery of goods, services, etc., approved and signed by both the Buyer (exporter) and the Seller (importer) [5, P.131]. By law contracts are made in writing. When striking a deal, standard contracts are widely used. Standard contracts are not a must. Some articles can be altered and supplemented [10, P.12].
The following items are of the greatest importance in any contract:
- contract No.;
- place and date of signing;
- names of the Sides which signed the contract;
- subject of the contract;
- quality of goods;
- price (per unit and total price);
- destination;
- delivery time;
- requirements for packing and marking;
- payment terms;
- conditions of submission and acceptance of goods;
- transport conditions; warranty conditions and sanctions;
- arbitration conditions;
- force majeure;
- judicial addresses of the Sides;
- signatures of the seller and the buyer.
All appendices form an integral part of contract. Contract is drawn up in accordance with the established form, often on special printed forms filled in with basic information by one-time writing. Sometimes, when a transaction is small in volume, a contract may be concluded by telex [5, P.131].
Now the most significant clauses of contract should be regarded.
The subject-section names the product for sale or purchase. It also indicates the unit of measure employed in foreign trade for specific commodities.
The quality of machines and equipment is to be conformed with the technical specification of the contract. The quality of raw materials and foodstuffs is determined by standards, samples, and description.
The price stated in a contract may be firm, fixed or sliding. Firm prices are not subject to change in the course of the fulfilment of the contract. Fixed price governs in the market on the day of delivery or for a given period. Sliding prices are quoted for machinery and equipment which require a long period of delivery.
There are some kinds of payment. A cheque is a written order to a Bank given and signed by someone who has money deposited there to pay a certain amount mentioned in the cheque to a person named on it. In the place of the cheque system Banks provide an international system of bank transfers. A draft is another order to pay. It is made out by an exporter and presented to the importer. It is also called a bill of exchange. A sight draft is a bill which is paid immediately on presentation. A bill is to be paid at a later date is called a term draft. There are 30-day, 69-, 90- and 120-day drafts. The payment is guaranteed with a letter of credit or a revolving letter of credit.
Transport and delivery terms. The so-called door-to-door (multimodal) transport is wide-spread in shipping now. It involves a transfer of the goods from one kind of transport to another. The main carrier often prefers to assume through responsibility for the cargo he caries. In a through movement of the gods a combined transport document is issued instead of a traditional Bill of Lading.
Packing goods for export is a highly specialised job. If the goods are improperly packed and marked, the carrier will refuse to accept them, or will make qualifications about the unsatisfactory condition of packing in the bill of lading. Packing can be external (crate, bag) or internal (box, packet, flask, etc.), in which the goods are sold. In case of consumer goods packing had a double function. On one hand, it is for protection. On the other hand – it serves to advertise a product and attract a customer.
Marking should be in indelible paint with recognised kind of marks. The cases in which the equipment is packed are to be marked on three sides: on the top of the case and two non-opposite sides. The marking shall be clearly made with indelible paint in the languages of the dealing sides.
Insurance of goods. The export trade is subject to many risks. Ships may sink or collide; consignment may be lost or damaged. All sensible business people now insure goods for the full value. The idea of insurance is to obtain indemnity in case of damage or loss. Insurance is against risk. While goods are in a warehouse, the insurance covers the risk of fire, burglary, etc. as soon as the goods are in transit they are insured against pilferage, damage by water, breakage or leakage. The insured is better protected if his goods are insured against all risks. The goods may be also covered against general and particular loss or damage.
Force majeure is a force against which you cannot act or fight. Every contract has a force majeure clause. It usually includes natural disasters such as an earthquake, flood, fire, etc. It can also include such contingencies as war, embargo, sanctions. Along with this there are some other circumstances beyond the Sellers’ control. The Seller may find himself in a situation when he can’t fulfil his obligation under the contract. When negotiating a contract a list of contingencies must be agreed on and put into the contract.
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.