Passage two
One legal agreement fundamental to many kinds of business is the contract. We can broadly define a contract as an exchange of promises enforceable by law. Contracts are so fundamental to business practice that even 5000 years ago the Egyptians and Mesopotamians knew and enforced them.
In the United States all of the following conditions must be met for a promise to be considered a valid and binding contract.
1. An offer must be made. One party must propose that agreement be entered into by both parties. The offer can be oral or written: A salesperson
telephones or writes a prospective client telling that the client can purchase materials at a certain price. In any case, the offer must be specific enough to make clear the intention of the offering party. .
2. The acceptance of the offer must be voluntary. The courts will not uphold a contract if either the offer or the acceptance was obtained through what is termed "duress or undue influence’’.
3. Both parties must give consideration. A promise binds legally only when each party gives something of value to the other. This term of value, or consideration, may be money, goods, services or the giving up of a legal right. The central idea behind this requirement is that bargaining should take place and that each party should get something for giving something.
4. Both parties must be competent. The law gives to certain classes of people only a limited capacity to enter into contracts. These are minors, the insane and the intoxicated. In most states, these people can make agreements only for the necessities of life: food, clothing, shelter and medical care.
5. The contract must be legal. The law will not enforce a promise that involves an illegal act. Some illegal situations are obvious. A gangster cannot get help from the courts to enforce a contract to deliver illegal drugs at a prearranged price. Even on a loan that is otherwise legal, if the lender asks more interest than state law allows, the courts will allow him to collect only the principal, not the interest.
6. The contract must be in a proper form. Although many contracts can be made orally, by an act, or by a casually written document, in certain situations the law requires prescribed form be allowed for a promise to be considered a valid contract.
6. The passage mainly talks about
A. the kinds of contracts B. the definition of the contract
C. the conditions for the contract D. the history of the contract
Choose the right meaning of the underlined part according to the context: "One party must propose that agreement be entered into by both parties."
A. joined B. seen C. understood D. made
8. Which of the following is true of a contract according to the passage?
A. It is mostly written. B. It must be written.
C. It must inform two or three parties. D. It must involve two parties.
9. Which of the following can make agreements for more than food, clothing, shelter. medical care in most states of the United States?
A. Minors. B. The insane.
C. The intoxicated. D. None of the above.
10. On a loan which is legal, the courts will allow a lender to collect only his principal when
A. the borrower can't pay the interest
B. the lender asks for interest more than the state law allows
C. there is no fixed interest rate
D. the interest is very low
五．Practical writing (15points)
Directions: Write to the Burgent Trading Co. Ltd. with the following information.
1. You have learned their name address from the internet and hope to enter into trade relation with them.
2. You are an importer of perfumes in China.
3. Ask for catalogue and price list.