Activity 1 Reading
Read the following dialogue and answer the questions below.
Feng: Last night I made a very careful study of the draft contract.
Longman: Do you have any questions?
Feng: Yes. There are a few points I’d like to bring up. First, about the terms of payment your draft says that the payment is to be made by D/P. This is not our practice. We prefer to have the payment by L/C through a negotiating bank in Sweden.
Longman: And…?
Feng: The second point is about the arbitration. It is stipulated that arbitration shall take place in China. In all our contracts signed with you, it was stipulated that arbitration took place in a third country.
Longman: Yes, that’s right.
Feng: But why do you wish this time to have it carried out in China?
Longman: Shall we take up the matter point by point?
Feng: That sounds good.(https://www.daowen.com)
Longman: First, about the terms of payment, we agree to pay by L/
C.
Feng: Thank you.
Longman: As for arbitration, in our dealings with many other companies from other countries, it is to be carried out in China. The Arbitration Commission of CCPIT enjoys a high prestige. Personally I hope you’ll accept this clause.Furthermore, the disputes that have arisen from our business transaction were all settled through friendly consultations. Very rarely was arbitration resorted to.
Feng: I see. The new arbitration clause is accepted. Is there anything else?
Longman: As far as the contract stipulations are concerned, there are only a few minor points on which we’d like to have your cooperation.
Feng: We’ll do our best.
Longman: Thank you very much. Let’s come down to this.
Questions:
(1) What clauses have they talked about on stipulations of the draft?
(2) How do they solve the difference on arbitration clause?