Warm-up
Contracts & Terms of Agreement
Contracts & Terms of Agreement
After this lesson you'll be able to...
- Use key vocabulary for contracts and agreements
- Explain obligations and permissions with modal verbs
- Describe terms such as payment, duration and termination
- Ask a polite question about a clause
Get to know each other (3 minutes)
- Have you ever signed a contract? What kind?
- Do you read a contract carefully before you sign?
- Why are written agreements better than oral ones?
- What is the most important part of a contract for you?
Say it out loud
Explain a rule. → The supplier must deliver the goods within ten days.
Fact worth knowing
Vocabulary
Key vocabulary
Useful phrases
| The supplier must deliver the goods within ten days. | Постачальник повинен доставити товар протягом десяти днів. |
| The buyer shall pay within 30 days of the invoice. | Покупець зобов’язаний оплатити протягом 30 днів після рахунку. |
| Either party may terminate the contract with 30 days’ notice. | Будь-яка сторона може розірвати договір, повідомивши за 30 днів. |
| You are not allowed to share this information. | Вам не дозволено ділитися цією інформацією. |
| You do not have to renew the contract. | Ви не зобов’язані продовжувати договір. |
| Could you explain this clause, please? | Чи не могли б ви пояснити цей пункт? |
| We are required to comply with the law. | Ми зобов’язані дотримуватися закону. |
| The contract is valid for two years. | Договір діє два роки. |
Try out the new words
Say one sentence with a new word. → …
Say one phrase from the list about your work. → …
Which word is it?
Fill in the missing word
Choose the correct word
Translate the phrase
Write each phrase in English.
Grammar
Modal verbs of obligation and permission
| must / have to / shall | strong obligation: The supplier must deliver on time. The buyer shall pay within 30 days. In contracts shall often means must. |
| is required to / is obliged to | formal obligation: The company is required to keep records. |
| may / can / is allowed to | permission: Either party may end the contract. Staff are allowed to work from home. |
| must not / is not allowed to | prohibition: You must not share this information. Employees are not allowed to take gifts. |
| do not have to | no obligation, it is optional: You do not have to renew the contract. It is NOT the same as must not. |
Which sentence is correct?
Complete with the correct word
Rewrite it
Explain each rule with a modal verb. Several answers are possible.
Correcting mistakes
Each sentence has one mistake. Write the correct sentence.
Put the words in order
Put the words in the right order and write the full sentence.
Say it about your own work
Say one rule from your own contract or job. → I must … / I am not allowed to … / I do not have to …
Reading
Read: extract from a service contract
Service Agreement — extract
1. Duration. This agreement is valid for two years from 1 January. It may be renewed for a further year if both parties agree.
2. Payment. The client shall pay each invoice within 30 days. If the client is late, a penalty of 2% per month must be paid.
3. Confidentiality. The contractor must not share any confidential information with other companies.
4. Termination. Either party may terminate this agreement with 60 days’ written notice. The client does not have to give a reason.
5. Amendments. Any amendment must be made in writing and signed by both parties.
True or false?
The agreement is valid for two years.
The client has to pay within 60 days.
The contractor may share confidential information.
Either party can end the contract.
Amendments can be made orally.
Answer the questions
How long is the agreement valid?
What happens if the client is late with a payment?
How much notice must a party give to terminate?
Who has to sign an amendment?
Find the key language
Write the word (or phrase) from the text.
Fill in from the text
Why is this a good text?
Your own opinion
- Which clause is the most important? Why?
- Is a 60-day notice period fair? Why or why not?
- What would you add to this agreement?
Practice
Picture the situation
Read → Understand → Sign → Comply. Never sign a contract you do not understand: ask questions about each clause.
Match the phrase to its function
Put the words in order
Put the words in the right order and write the full sentence.
Fill in the missing phrase
Say it in your own words
Write one sentence. Several answers are possible.
Translate into English
Write each sentence in English. Several answers are possible.
A useful tip
Speaking
How to use this section
Your tutor plays a lawyer or a business partner. Discuss contract terms and explain obligations. Use must / shall / may / is not allowed to / do not have to.
Explaining the duration
Task: explain how long the contract lasts and how to renew it.
Starter: "The agreement is valid for two years. It may be renewed for one more year if both parties agree."
Explaining payment
Task: explain when and how the client has to pay.
Starter: "The client shall pay each invoice within 30 days. If the payment is late, a penalty must be paid."
Asking about a clause
Task: you do not understand a clause. Ask for an explanation.
Starter: "Excuse me, could you explain clause 4, please? I am not sure what “liability” means here."
Explaining confidentiality
Task: tell a new colleague what he must not share.
Starter: "You must not share any confidential information with other companies, and you are not allowed to copy these files."
Optional things
Task: say what the client is free to decide.
Starter: "You do not have to renew the contract, and you do not have to give a reason if you want to terminate it."
Proposing an amendment
Task: ask to change one part of the contract.
Starter: "We would like to propose an amendment. Could we extend the deadline by two weeks?"
Closing the discussion
Task: summarise what you agreed and say what happens next.
Starter: "So we agreed on the payment terms and the deadline. I will send the new version, and both parties must sign it by Friday."
Full conversation — no stops
With your tutor, discuss a short contract: explain duration, payment and termination, ask about a clause and propose an amendment — entirely in English.
Let's talk — reflection
- Which modal verb is the most difficult for you?
- Would you like to work with contracts every day?
- What is the biggest risk when you sign a contract quickly?
Cool down
Now I can...
- Use key vocabulary for contracts and agreements
- Explain obligations and permissions with modal verbs
- Describe terms such as payment, duration and termination
- Ask a polite question about a clause
Quick self-check
Which modal verb means a strong obligation?
What is the difference between must not and do not have to?
What is a clause?
One more thing before you go
Tell your tutor one rule at work. → We must … / We are not allowed to … / We do not have to …
Homework
Words to remember
| a contract | контракт, договір |
| a clause | пункт, стаття (договору) |
| terms and conditions | умови та положення |
| a party | сторона (договору) |
| an obligation | зобов’язання |
| to sign | підписувати |
| to terminate | розривати, припиняти (договір) |
| to renew | поновлювати, продовжувати |
Fill in the missing word
Choose the correct form
Open the brackets
Correct the mistake
Each sentence has one mistake. Write the correct sentence.
Translate the phrase
Write each phrase in English. Several answers are possible.
Write it yourself
Write five clauses (one sentence each) for a simple service contract. Use must, shall, may, must not and do not have to once each.
Practise out loud
Read your five clauses aloud as if you were explaining the contract to a new client.
Read aloud
Read the extract from the service contract aloud twice before the next lesson.
- 8.7 I did the writing task
- 8.8 I practised out loud
- 8.9 I read the text aloud twice