Lesson 1: Contracts

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WORDS TO LEARN
r abide by I cancellation r establish r provision
r agreement determine r obligate r resolve
r assurance r engage r party r specific

Study the following definitions and examples.

1. abide byv., to complywith; to conform
a. The two parties agreed to abide by the judge,s decision.
b. For years he has abided by a commitment to annual employee raises.
2. agreement n., a mutual arrangement; a contract
a' The landlord and tenant were in agreement that the rent should be prorated to the middle of the
month.
b. According to the agreement, the caterer will also supply the flowers for the event.
3. assurance n., a guarantee; confidence
a. We should not begin the work without the assurance of a signed contract.
b. He spoke with assurance about the skills of his contract lawyer.
4. cancellation n., annulment; stopping
a. Work on the project had to stop because of the cancellation of the contract.
b. The cancellation clause appears at the back ofthe contract.
5. determine v., to find out; to influence
a' After reading the contract, I was still unable to determine if our company was liable for back wages.
b. The skill of the union bargainers will determine whether the automotive plant will open next week.
6. engage v., participate; involve
a. Before engaging in a new business, it is important to do thorough research.
b. He engaged us in a fascinating discussion about current business law.
7. establish v., to institute permanently; to bring about
a. lVhen this company was established, the owners signed contracts with all their employees.
b. The contract establishes a relationship between the company and the service proüder.
8. obligate v., to bind legally or morally
a. The contractor was obligated by the contract to work 40 hours a week.
b. I felt obligated to finish the project even though I could have exercised my option to quit.
9. party n., a person or group participating in an action or plan; the persons or sides concerned in a
legal matter
a. The parties agreed to a settlement in their contract dispute.
b. The party that prepares the contract has a distinct advantage.
10. proüsion n., a measure taken beforehand; a stipulation
a. Carefully read all the provisions of the contract before signing it.
b. The contract contains a proüsion to deal with how payrnents are made if John loses his job.
1 1. resolve v., to find a solution; to make a firm decision
a. The mediator was able to resolve the problem to everyone's satisfaction.
b. The businessman resolved to clean out all the files by the end of the week.
12. specific adj., particular
a. The customer's specific complaint was not addressed in his e-mail.
b. In a contract, one specific word can change the meaning dramatically.
LESSON l: CONTRACTS t5
WORD FAMILIES
verb agree If both parties agree to the terms, we can finalize the
contract.
noun agreement As soon as the labor agreement was signed, the factory
resumed production of new cars and vans.
adjective agreeable The parties are agreeable to the terms.

verb assure I assure you that the contract was reviewed by our lawyer.
noun assurance Vy'hat assurance is there that the company will stay in
business during the life of the contract?
adverb assuredly He spoke assuredly about the terms of the contract.

verb cancel We can cancel the contract, but that will cause a number of
problems.
noun cancellation A cancellation fee is usually included in a writer's contract in
case the article isn't published.
adjective canceled The canceled contract ended up costing our company a good
deal of money.

verb obligate The terms of the contract obligate us to work for at least one
more month.
noun obligation According to the contract, the company has the obligation to
provide child care for employees'families.
adjective obligatory Agreeing to the terms of the contract is obligatory if you want
to work here.

verb provide Since the machine is very reliable, why dont we cancel the
service contract they proüded?
noun provider We must negotiate a new contract with our Internet seruice
proüder.
noun provision The provision for canceling the contract is in the last clause.

verb specifii The contract specifies an annual salary raise.

noun specification The work was done according to the specifications of the
contract.
adjective specific There is no specific part of the contract that prevents us from
hiring extra help.

I5 ESSENTIAL WORDS FOR THE TOEIC

WORDS IN CONTEXT
Read. the foÜowing passage and urttu the words in the blanks below

abide by cancel establish proüde

agreement determine obligates resolve

assurance engaging parties specifies

Contracts are an integraL part of the workplace. The purpose of a contract is to

(1) aî (2) between two or more

(3) . The contact (4) the terms and

(s) the parties to follow them. Contracts often include the
amount that a client will pay contractors and what services will be proÿided. For

example, in your office, you may have a contract that provides (6)

that your copier machine or phones will be repaired within a certain amount
of time. A contract often states wavs to (7) if the quality of
work delivered is acceptable. Well-written contracts usually (8)

ways to (9) problems like these when they happen. Before

(10) in a contract, both parties should think carefully, as they

will have to (11) the conditions specifled in it. A contract usually

specifies how the two parties can (12) it if either party fails to meet

the terms.

LESSON I: CONTRACTS 17
WORD PRACTICE
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Listening Comprehension t I

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PARTT PHOTO
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Look at the picture and listen to the sentences. I

Choose the sentence that best describes the picture.
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1.@@o@
PART 2 QUESTTON-RESPONSE
Listen to the question and the three responses. Choose the response that best answers the question.

2.@@@ 3.@@O
PART 3 COI\IVERSATION
Listen to the dialogue. Then read each question and choose the best answer.

4. \Â/hat problem do the speakers have with the 6. \Â/hat does the woman suggest doing?
computer company? (A) Asking the company to write a new contract
(A) It wont renew the contract. (B) Canceling the contract
(B) It can't repair the computer. (C) Renewing the contract
(C) It sends incorrect bills. (D) Waiting until the contract runs out
(D) It charges them for extra spare parts.

5. \.Mhen will the contract run out?

(A) In two months
(B) In nine months
(C) In one year
(D) In four years

PART4 TALK
Listen to the talk. Then read each question and choose the best answer

7. \Mho is talking? 9. \Mhen can the parties sign the contract?

(A) A lawyer (A) In two days
(B) An upset signer of the contract (B) At the end of the week
(C) Asecretary (C) Next week
(D) Someone who has canceled his agreement (D) In thirty days

8. ryVhich part of the contract are they looking at?

(A) A cancellation clause
(B) The assurance of quality
(C) The agreement on payrnent
(D) A provision in case of bankruptcy

18 ESSENTIAL WORDS FOR THE TOEIC

Reading
PART 5 INCOMPLETE SENTENCES
Choose the word that best completes the sentence.

10. The two sides were no closer to a final _ at 13. I don't feel any to give my boss more than
midnight than they were at noon. two weeks'notice when I leave.
-
(§ agreement (C) agree (A) oblige (C) obliged
(B) agreeable (D) agreed (B) obligatory (D) obligation

11. Ms. Smith _ to bring up her concerns 14. The _ for terminating the contract were not
about the contract at the next meeting. discussed.
(A) resolved (C) assured (A) proüde (C) provider
(B) abided by (D) established (B) provisions (D) proüsioning

12. If you _ your reservation 48 hours in 15. The contract calls for the union to who
advance, you will not be billed. their bargaining representative will be.
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(A) oblige (C) engage (A) specific (C) specifuing
(B) cancel (D) determine (B) specification (D) specify

PART 6 TEXT COMPLETION

Choose the word or phrase that best completes the sentence.

Rental Properÿ for Everyone

More and more people are investing in rental property these days. Whether you have a small apartment in your
house to.rent, or decide to invest in an apartment or office building, rental property can provide extra income
for you and your family. What does every landlord need to know?

Leases
A lease is an between a landlord and a tenant. Standard leases are available on the lnternet, and
16. (A) agree
(B) agreed
(C) agreeable
(D) agreement
many property owners find them quite satisfactory. Read the standard lease carefully to determine if it meets
the needs of your situation. You may want to make some additional You may want to add a
t7. (A) proüsions
(B) resolution
(C) obligations
(D) engagements
pet clause, for example, or make different specifications pertaining to the security deposit. lf you decide to
make changes to the standard lease, you should meet with a lawyer. The lease is the most important tool
you have i{ you need to resolve a dispute with your tenant. When you have a lease written by a lawyer, you
that you have the protection you need.
18. (A) assure
(B) will assure
(C) are assuring
(D) are assured

LESSONI:CONTRACTS 19
PART 7 REIIDING COMPREHENSION
Questions 19-23 refer to the following letter and form.

Santos Office Cleaners Santos Office Cleaners

112 Main St. Customer Questionnaire
Windsor. Ontario
Date contract signed: March 23,20-
December 15,20-
Mr. Type of facility: Frequency of service:
James Harrison
17 Hartland Road B single office fl dailv
Windsor, Ontario I office building [7 weeklv

Dear Mr. Harrison,

n private home fl monthlv
'We
E other n other
are very sorry that you have decided to cancel
Reason for contract cancellation
your cleaning service contract with us. In order to
(choose one):
assure that we provide our customers with the best
possible service, we always try to determine the n no longer need service
reasons for contract cancellations. Please take a few n signed contract with a different company
minutes to fill out the enclosed form. This is for our Ef payment dispute not satisfactorily
information only; completing the form does not resolved
obligate you to buy any product or enter into any E specific complaint not resolved
new agreement with our company. We appreciate n other
your cooperation. If at any time in the future you
decide to renew your contract with us, please don't
hesitate to contact me. Comments: X was s s^tis+ied witt".
Sincerely,
tlne service ded

Kosa Santos However T aw lrustrnted

.t
Rosa Santos
Owner
taL^Dt to resolve lt*e f iss«as

19. \ÀIhat is the purpose of the letter? 22: Theword assure in letter one, line 3, is closest in
(A) To find out why Mr. Harrison no longer meaning to
wants this service (A) guarantee.
(B) To ask Mr. Harrison to renew his contract (B) discover.
(C) To advertise new services provided by (C) prove.
the company (D) advertise.
(D) To offer the customer a better contract
23. The word specificin form two, line lS, is closest
20. lVhat is Ms. Santos's business? in meaning to
(A) Customer relations (A) personal.
(B) Cleaning service (B) important.
(C) Contract reüew (C) repeated.
(D) Conflict resolution (D) particular.

21. \tVhy did this customer cancel the contract?

(A) The company damaged something in
his office.
(B) The employees proüded unsatisfactory
service.
(C) He had a disagreement about his bill.
(D) He doesn't want this type of service anymore.

20 ESSENTIAL WORDS FOR THE TOEIC