UnitBusinesscontracts91Contractsarethefoundationofbusiness.Afterroundsofnegotiations,businesspartnersconcludeacontracttodefinetheirrespectiverightsandobligations.Couldyouthinkofsomescenarioswhereonemayenterintoacontract?Herearesomescenarioswhereonemayenterintoacontract:Employmentagreement:anagreementestablishedbetweenanemployerandanemployeeduringthehiringprocess.Salescontract:anagreementestablishedduringthepurchaseorsaleofgoodsorservices.Leaseagreement:acontractsignedwhenleasingorrentingproperty.Servicecontract:anagreementestablishedwhenengagingacontractororserviceprovider.Non-disclosureagreement(NDA):alegalagreementsignedwhensharingordisclosingconfidentialinformation.

Loanagreement:acontractsignedwhenlendingorborrowingmoney.Softwarelicenseagreement:anagreementestablishedwhenacquiring,purchasing,orusingsoftware.Realestatepurchaseagreement:acontractsignedwhenbuyingorsellingrealestate.2Whatarethekeyelementsofabusinesscontract?Abusinesscontracttypicallyincludesseveralkeyelementstoensureclarity,legality,andenforceability.Herearethemaincomponents:Offerandacceptance:Onepartymakesanoffer,andtheotherpartyacceptsit.Thismutualagreementformsthebasisofthecontract.Consideration:Thisreferstosomethingofvalue(money,goods,services,etc.)exchangedbetweentheparties.Mutualconsent:Bothpartiesmustagreetothetermsofthecontractwillinglyandwithoutcoercion.Legality:Thecontract’ssubjectmattermustbelegal.Contractsinvolvingillegalactivitiesarenotenforceable.Writtendocument:Whilenotallcontractsneedtobeinwritingtobeenforceable,havingawrittendocumenthelpsclarifythetermsandcanbecrucialforcomplexagreements.Termsandconditions:Theyrefertothespecificdetailsoftheagreement,includingtherightsandobligationsofeachparty,timelines,paymentterms,andanycontingencies.Signatures:Thecontractshouldbesignedbyallpartiesinvolvedtoindicatetheiragreementandcommitmenttotheterms.Retaildistributionagreementreseller

acompanythatsellsgoodsmadebyanothercompany,especiallyinthecomputerindustrye.g.Thecomputerresellerhasavastnetworkofretailstores.whereas

usedatthebeginningofanofficialdocumenttomean“becauseofaparticularfact”e.g.Whereasthemarketdemandforourtraditionalproductshasbeensteadilydeclining,wehavedecidedtoallocatemoreresourcestotheresearchanddevelopmentofnewandinnovativeproducts.Retaildistributionagreementaccessory

sth.suchasapieceofequipmentoradecorationthatisnotnecessary,butthatmakesamachine,acar,etc.moreusefulormoreattractivee.g.Ourelectronicsstoreoffersawiderangeofaccessoriesforsmartphones.enduserthepersonwhousesaparticularproduct,ratherthanthepeoplewhomakeordevelopite.g.Thesoftwaredevelopmentcompanycontinuouslyupdatesitsproductsbasedonthefeedbackfromendusers.Retaildistributionagreementexhibit

adocument,atable,achart,orotherpieceofevidenceattachedtoacontractoralegaldocument,whichprovidessupplementaryinformationordetailsrelevanttothemaindocumente.g.Thelicensingagreementhadanexhibitthatspecifiedthepermittedusageofthelicensedtechnology.term

aprovisionoraconditioninacontract,anagreement,orotherlegaldocumentthatspecifiestheobligations,rights,orconditionsthatthepartiesinvolvedmustadheretoe.g.Oneofthekeytermsintheemploymentcontractisthenon-disclosureclause.Retaildistributionagreementappoint

tochoosesb.forapositionorajobe.g.TheboardofdirectorsdecidedtoappointanewCEOtoleadthecompanythroughitsdigitaltransformation.affiliateacompany,anorganization,etc.thatisconnectedwithorcontrolledbyalargeronee.g.Theparentcompanyprovidesvariousformsofsupporttoitsaffiliates,includingfinancialassistance,technologicalknow-how,andmarketingstrategies.Retaildistributionagreementamend

tomakesmallchangestoalaworadocument,forexample,toimproveit,tomakeitmoreaccurate,ortotakeaccountofnewconditionse.g.Thegovernmentdecidedtoamendthetaxlawtoencouragemorebusinessestoinvestinresearchanddevelopment.FOB(freeonboard)ashipmenttermusedtoindicatewhetherthesellerorthebuyerisliableforgoodsthataredamagedordestroyedduringshipping

e.g.ThesupplierquotedusapriceonFOBbasis.Retaildistributionagreementtitlethelegalrighttohaveorownsth.e.g.Afterthefullpaymentismade,thetitleoftherealestatepropertywillbetransferredfromthesellertothebuyer.masterpack

alargepackagingunitthatcontainsmultiplesmallerunitsofaproducte.g.Whenthenewproductlinewaslaunched,thecompanydecidedtousemasterpackstoreducepackagingcostsandimprovesupplychainefficiency.Retaildistributionagreementsell-throughthenumberofunitsofaparticularproductsoldinaparticularperiod,oftenexpressedasapercentageofthenumberavailableatthebeginningoftheperiode.g.Retailerscloselymonitorthesell-throughofdifferentproductlines.EDI(electronicdatainterchange)theintercompanycommunicationofbusinessdocumentsinastandardformat,whichreplacespaperbaseddocumentssuchaspurchaseordersorinvoicese.g.OurcompanyhasfullyembracedEDItechnologytostreamlineourbusinessoperations.Retaildistributionagreementcovenantalegalagreementinwhichsb.promisestopayapersonoranorganizationanamountofmoneyregularlye.g.Thecompanyenteredintoacovenantwithamajorbanktosecurealong-termloan.deceptiveintendedtomakesb.believesth.thatisnottrue

e.g.Thecompany’sadvertisingcampaignwasfoundtobedeceptive.Retaildistributionagreementdetrimentalcausingharmordamagee.g.Alackofinvestmentinemployeetrainingcanbedetrimentaltoacompany’slong-termdevelopment.designationanameoratitlee.g.Inthebusinessworld,thedesignation“ChiefInnovationOfficer”hasbecomeincreasinglycommonascompaniesstrivetodriveinnovationandstaycompetitiveintherapidlyevolvingmarket.Retaildistributionagreementcopyrightthelegalrighttobetheonlyproducerorsellerofacreativeworkforaspecificlengthoftimee.g.Inthepublishingindustry,copyrightdisputesarenotuncommon.terminationtheactofendingsth.,ortheendofsth.

e.g.Theterminationofthemergerdealcameasashocktothemarket.Retaildistributionagreementprovisionaconditionoranarrangementinalegaldocumente.g.Theleasecontracthasaprovisionregardingpropertymaintenance.credittermtheconditionsthatoutlinethedurationandtermsofpaymentforgoodsorservicespurchasedoncredite.g.Ourcompanyoffersflexiblecredittermstoourregularcustomers.Retaildistributionagreementspin-offtheactionofformingacompanybyseparatingitfrompartsofanexistingcompanye.g.Thetechnologygiant’sspin-offofitscloudcomputingdivisionwasastrategicmove.defaultfailuretodosth.thatmustbedonebylaw,especiallypayingadebte.g.Thecontractincludesstrictpenaltiesfordefault.Retaildistributionagreementseverabilitycapabilityofbeingseparated,asofaclauseinanagreemente.g.Theseverabilityclauseinthepartnershipagreementiscrucial.supersedetotaketheplaceormoveintothepositionofalaw,aninstruction,arule,etc.e.g.Thenewtaxlawwillsupersedetheoldonenextmonth.Retaildistributionagreementexecutetodowhatiswritteninacontract,aplan,etc.e.g.Oncethesalescontractissigned,bothpartiesareobligatedtoexecuteit.Understandingthetext1Decidewhetherthefollowingstatementsaretrue(T),false(F),ornotgiven(NG)accordingtothetext.____1.CompUSAisobligedtomarketandsellHandspring’shandheldcomputersandassociatedaccessoriesintheU.S.____2.CompUSAcanresellHandspringproductstoothercountries.____3.HandspringcannotadjusttheHandspringproductpricesnomatterwhat.____4.Ifthetotalstockbalancereturnsforaspecificproductis4%ofthetotalnumberofpurchases,thereturnrequestwillbedenied.TFFFUnderstandingthetext____5.Sell-throughandinventoryinformationforallinventorylocationsistobetransferredtoHandspringasagreedupon.____

6.Ifpartoftheagreementisheldtobeinvalid,theremainingpartswillremainvalidandenforceable.____

7.Bothpartiesagreedtorenewthecontractinthefuture.NGTTUnderstandingthetext2Discussthefollowingquestions.1.Whatpaymentrequirementsareimposedbythisagreement?2.Whatbehaviorsareprohibitedonthepartofthereseller,accordingtotheresellercovenants?3.HowcouldthetrademarksofHandspringbeused?4.Underwhatconditionswouldtheagreementbeterminated?5.Whatlanguagefeatureshaveyounoticedinthisagreement?Understandingthetext1.Whatpaymentrequirementsareimposedbythisagreement?Thiscontractbringsuptworequirementsasfaraspaymentbytheresellerisconcerned.First,ithastobepaidinfull60daysfromtheinvoicedate.Second,theresellershallpaymonthlyservicechargesof1%permonthforanypastdueamounts.Understandingthetext2.Whatbehaviorsareprohibitedonthepartofthereseller,accordingtotheresellercovenants?Thefollowingthingsareprohibited:1)deceptive,misleading,orunethicalpracticesthatareormightbedetrimentaltoHandspringorHandspringproducts;2)makingfalseormisleadingrepresentationswithregardtoHandspringorHandspringproducts;and3)publishingoremploying,orcooperatinginthepublicationoremploymentof,anymisleadingordeceptiveadvertisingmaterialswithregardtoHandspringorHandspringproducts.Understandingthetext3.HowcouldthetrademarksofHandspringbeused?TheresellermayusethetrademarksforHandspringproductssolelyinconnectionwiththereseller’sadvertisementandpromotionofHandspringproducts,inaccordancewithHandspring’sthen-currenttrademarkusagepolicies.Besides,theresellershallnotremoveordestroyanytrademarksontheproducts,software,documentation,orothermaterialsrelatedtotheproducts.Understandingthetext4.Underwhatconditionswouldtheagreementbeterminated?Thisagreementcanbeterminatedinthreeways.Thefirstwayisthattheagreementwillautomaticallyterminateafter12monthsunlessterminatedearlier.Secondly,itcanbeterminatedwithoutcause,atanytime,bywrittennoticetotheotherpartynotlessthan30dayspriortotheeffectivedateoftermination.Thirdly,whentheresellerfailstofulfillspecificobligations,Handspringmayterminatethisagreementbygivingawrittennoticetothereselleratleast10dayspriortotheeffectiveterminationdate.Understandingthetext5.Whatlanguagefeatureshaveyounoticedinthisagreement?First,contractlanguageisoftenveryformal,usingalotoflegalterminologiesandformaltermsthatarenotoftenusedindailylife.Secondly,longandcomplexsentencesarecommon.Thirdly,thewholetextmustbecarefullystructuredintermsofcontents,tryingtocovereverythingconcerningtherightsandobligationsofthetwopartiesintheagreement.setforthB.dependentonsth.elsetohappenorbetruesubjecttoC.inthewaythatisrequiredbyarule,alaw,etc.incompliancewithD.tostarttobecomeinvolvedinsth.,especiallyadiscussionoranagreementassenttoE.toexplainideas,facts,oropinionsinaclearly-organizedwayenterintoA.concerningorinrelationtosth.Languagework1withrespecttoF.toagreetoasuggestion,anidea,etc.Matchthephraseswiththeirmeanings.Languagework2Completethefollowingsentenceswiththeproperformofthephrasesfromtheaboveexercise.1.Theshareholders________________

thenewpolicychanges.2.Tradersmustconsidermarketregulationswhen

______________contracts.

3.Thechallengeistodrawtherightline

___________________customerintimacy.4.Thearguments

____________bythetwosidesreflectedtheirdivergentoutlooks.5.Councilappointmentswill

___________asix-monthprobation.6.Thecompanyupdateditsprivacypolicy___________________thelatestdataprotectionregulations.

assentedto

enteringinto

withrespecttoincompliancewith

subjectto

setforthLanguagework3TranslatethefollowingexpressionsintoChinese.1.non-exclusiveresellers2.returnprocessingcenters

3.totalstockbalancereturns4.adatatransferandexchangemethod

5.trademarkusagepolicies6.pastdueinvoices非獨家經銷商逾期發票總庫存平衡退貨數據傳輸和交換方商標使用政策退貨處理中心UnderstandingthecomponentsofacontractContractscanoftenbeofgreatlength.Themaincomponentsofacontractincludepreambleandrecitals,definitions,rightsandobligations,generalprovisions,andsignatures.Thepreambleofacontractistheintroductoryparagraphthatidentifiesthepartiestotheagreement.Itistypicallyfollowedbyparagraphsknownasrecitals(alsocalledthebackgroundsection).Sometimes,theserecitalparagraphsarelabeled“Whereas…”Thepreambleandrecitalstellthewho,what,when,andwhyofthetransaction.InTextA,thefirstfiveparagraphsarethepreambleandrecitalsofthecontract,providingbackgroundinformation.Thedefinitionssectionallowspartiestoprovideprecisedefinitionsfortermsusedwithinthespecificagreement.InPara.6,TextA,termslike“Customer,”“Products,”and“Territory”aredefinedtoexplainthespecificmeaningsofwordssusceptibletoalternativemeanings.Notethatoncethewordsaredefined,theywillremaincapitalizedthroughouttheagreementtoshowtheyshouldnotbeinterpretedotherthanwhattheyhavebeendefined.UnderstandingthecomponentsofacontractTherightsandobligationssectionpointstothespecificrightsandobligationsofthepartiestothecontract.Mostcontractscontainsomecommonformsofcontractobligations,suchasprices,payment,shipment,delivery,etc.InTextA,theyareshowninParas.7-20.Thenextsectionisgeneralprovisions,whicharestandardclausesincludedacrossthemajorityofcontractsundertitleslike“General,”“Miscellaneous,”or“Standard.”Theycoverthesettlingofdisagreementsandhowcourtsinterpretcontracts.ThissectionofTextAcanbefoundinParas.21-27.Afterthegeneralprovisionscomethewitnessingclauseandthesignatureblocks.ThewitnessingclauseconfirmsthatthepartieshaveallsignedtheAgreementinfrontofeachotherandhavewitnessedthesignaturesofeachother.ThisclausecanbefoundinPara.28.Signaturesofacontractsignifythatanofferhasbeenconsideredandaccepted.Thenamesinthesignatureblocksforthetwopartiesshouldmatchexactlythoseintheintroductoryparagraph.Signaturescanalsobemadewithstampsorwithelectronicmeans.PhilipsHealthcaresoftwarelicenseagreement

licensegrantacontractualprovisionthatestablishesoneparty’s(alicensor)agreementtoallowanotherparty(alicensee)touseitsintellectualproperty(IP)subjecttocertainconditionse.g.Thefashionbrand’slicensegrant

toafootwearmanufacturerallowsthelattertoproduceandmarketshoesfeaturingthebrand’slogoanddesigns.quotationadocumentthatasellerprovidestoabuyertooffergoodsandservicesatastatedpriceunderspecifiedconditionse.g.

Whenaconstructioncompanybidsforaproject,itusuallypreparesadetailedquotationfortheclient.

PhilipsHealthcaresoftwarelicenseagreement

nullandvoidhavingnolegalforcee.g.Acontractsignedunderduressorwithfraudulentmisrepresentationisconsiderednullandvoid.royalty-freelicenseatypeoflicensethatgivesuserstherighttousecopyrightedmaterialwithouthavingtocompensatetheownerforaslongastheywante.g.Ourgraphicdesignteampurchasedaroyalty-freelicenseforacollectionofhigh-resolutionimages.PhilipsHealthcaresoftwarelicenseagreement

liabilitylegalresponsibilityforsth.,especiallyforpayingmoneythatisowed,orfordamageorinjurye.g.Inapartnershipbusiness,eachpartnerhasunlimitedliability

forthedebtsandobligationsofthefirm.indemnityprotectionagainstlossordamage,especiallyintheformofapromisetopayforanylossordamagee.g.Theconstructioncompanyincludedanindemnityclauseinthecontractwithitssubcontractors.

PhilipsHealthcaresoftwarelicenseagreement

PHI(protectedhealthinformation)anyinformationinthemedicalrecordthatcanbeusedtoidentifyanindividualandthatwascreated,used,ordisclosedinthecourseofprovidingahealthcareservicesuchasdiagnosisortreatmente.g.Healthcareprovidersarerequiredbylawtoprotectpatients’PHI.UnderstandingthetextAnswerthefollowingquestions.

1.Howshouldthephrase“licensedandnotsoldtoyou”inPara.2beinterpreted?2.Whataretherightsandobligationsofthecustomer?3.Underwhatcircumstancesmaythecustomertransferthelicensedsoftware?4.Whatisthefunctionofthedisclaimerintheagreement?5.Whatdoyouthinkistheimportanceofsoftwarelicenseagreementsfortechnologycompanies?Understandingthetext1.

Howshouldthephrase“licensedandnotsoldtoyou”inPara.2beinterpreted?Thismeanstheuserofthesoftwareonlygetsalicensetousethesoftware.Theuserdoesnotbecomethecopyrightownerofthesoftware,whilePhillipsretainsallrightstothesoftwarethatarenotexplicitlygrantedtotheuserunderthelicense.Understandingthetext2.Whataretherightsandobligationsofthecustomer?Thecustomerisgivenanon-exclusiveandnon-transferablerightandlicensetousethecomputersoftwarepackageinaccordancewiththetermsofthequotationandthesetermsandconditionsofsale.ThecustomershallreturnthelicensedsoftwareandanyauthorizedcopiesthereoftoPhilipsimmediatelyuponexpirationorterminationofthislicense.Understandingthetext3.Underwhatcircumstancesmaythecustomertransferthelicensedsoftware?AccordingtoPara.8,acustomermaytransferthelicensedsoftwareinconnectionwiththesaleoftheproducttoahealthcareproviderwhoacceptsallofthetermsandconditionsofthislicense,providedthatthecustomerisnotinbreachordefaultofthislicense,thetermsandconditionsofsale,oranypaymentobligationtoPhilips.Understandingthetext4.Whatisthefunctionofthedisclaimerintheagreement?ThedisclaimerisintendedtolimitthescopeofliabilityofPhillipsoncertainoccasions,thusprotectingtherightsofPhillipsasmuchaspossible.Understa