LEGAL ENGLISH manual (2019-2020)

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WORKSHEET 3.1 - Contract terminology

1. Frequently confused words

a. Complete the sentences below with the correct form of the words below. you can repeat words
but you cannot use the same form of the word more than once.

BIND CONTRACT FORCE
BREACH ENFORCE TERM
COMMIT EXECUTE WRITE

1. If one of the parties breaches a contract, the non- breaching or injured party may

bring an action against him.

2. The contract was executed as soon as the two parties signed it. Upon its execution ,

it became a valid agreement.

3. The court refused to enforce the contract clause, ruling that it was abusive and

therefore not enforceable .

4. The court ruled that the contract was not legally binding because one of the parties was

a minor. Therefore, neither of the parties was bound by the agreement.

5. The duration of this Agreement shall be for a term not to exceed 12 months. Under the

terms of this agreement, you shall pay the rent on the 20th of every month.

6. The parties who sign the contract can also be referred to as the contracting parties.

Contractual capacity is limited for minors and people who are mentally disabled.
7. The purchase of real property requires a written contract, but this does not mean that

all contracts must be in writing .

8. This agreement is invalid because one of the parties was forced to sign it, i.e. she signed

it under duress.

2. Prepositions a contract.

a. Complete the sentences below with the correct preposition.

1. The parties to a contract must fulfill their obligations.
2. You must read the clauses in a contract very carefully, before you enter into
3. The contract is binding on the parties.
4. The Seller has committed itself into delivering the goods by March 25.

Language note

EXECUTE a contract (Noun: execution) – Generally it means “to perform all necessary
formalities, so as to make and sign a contract complete and valid ; to make; to sign” (=otorgar,
formalizar un contrato).
Less frequently it may also be used with the following meaning: “to perform a contract (which
is the more usual term); to do; to carry out according to its terms; to fulfill the purpose of”
(=ejecutar un contrato) .

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WORKSHEET 3.2 – Conditions and Contingencies
1. Refer to page 129 in your books and answer the questions below. You must interpret what the
contract clause is saying. DO NOT SIMPLY COPY THE TEXT IN THE CONTRACTS.
1. DISTRIBUTION AGREEMENT. Establishing a condition in a contract
Clause One:
Is the agreement always renewed automatically ?
No, only if ................................................................................................................................................
........................................................................................................................................................................
What expression is used to introduce that condition? .......................................................................
Can the renewal be done in any way?

No, only the way ….. ............................................................................................................................
........................................................................................................................................................................
What expression is used to introduce that condition? .......................................................................
Clause Two:
Will the contract always expire on the date established in Schedule I?
No, not if ..................................................................................................................................................
........................................................................................................................................................................
What word is used to introduce that condition? ...............................................................................
Clause Three:
Can the Distributor always assign its contractual rights to a related corporation?
No, only if ................................................................................................................................................
........................................................................................................................................................................
What expression is used to introduce that condition? .......................................................................

NOTE: When explaining a condition, we usually explain the right first and then the
condition

2. LICENSING AGREEMENT. Establishing a possible contingency in a contract.
Clause 1 & 2
Clauses One and Two establish that the contract will terminate in two possible cases. What are
they?
If one of the parties ............................................................................................................................
If the government enacts regulations which ...........................................................................
........................................................................................................................................................................

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What expressions are used to introduce these contingencies?
 Which expression is followed by a nominal structure? ................................................................
 Which expression is followed by a subject + verb? ......................................................................
When explaining what will happen when a possible contingency arises, we usually
start by introducing the contingency.

2. Rewrite these contingencies :
In case of insolvency of one of the parties. =
In the event that ..................................................................................................................................
In the event that one of the companies is dissolved ….
In case of .................................................................................................................................................

Clause 3
The last clause combines a contingency + right + condition.
Right = Licensee’s right to continue manufacturing and selling the product.
What is the contingency? If...............................................................................................................
In this case can the licensee continue to manufacture and sell the product? .....................................
What is the condition? Only if it* .................................................................................................

*NOTE: In contracts, IT is often used instead of HE/SHE to refer to one of the parties, even though they may be referring
back to persons, not things.

3. Express the above clause in two different ways. Be careful to include the contingency + the
right + the condition.

BE VERY CAREFUL WITH THE VERB. SHOULD IT BE AFFIRMATIVE OF NEGATIVE?

 In the event of early termination, Licensee ............................................................
....................................................................................................................... provided that
..................................................................................................................................................

 In the event that ................................................................................ , the Licensee
.................................................................................................................................. unless
..................................................................................................................................................

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4. Insert the expressions below in the column that indicates the type of structure they must be
used after.

 subject to  with/without  in the event of

 provided/providing ( that )  in case of  in the event that

 unless  as/so long as
+ Nominal structure + Sentence (Subject + verb)

Condition Condition

Contingency Contingency

5. Complete the sentences with the correct expression from the previous list.

1. Licensee may extend the term for a period of two years PROVIDED THAT/ SO LONG A
Licensee has fully performed all of its obligations hereunder.

2. LICENSEE may not sell any of the LICENSED ARTICLES UNLESS LICENSEE has
received LICENSOR’S prior written approval.

3. All price modifications by the Distributor are SUBJECT TO the terms of clause
7 hereof.

4. IN THE EVENT THAT Licensee fails to perform any of its obligations

hereunder, the Licensor may thereupon terminate this agreement by written notice.

5. IN CASE OF / IN THE EVENT OF unreasonable exchange rate fluctuations, ABC

and the Distributor will agree new prices in order to ensure that the Products remain
competitive in the Territory.

6. Neither of the parties may assign its rights WITHOUT the prior written consent
of the other party.

7. At the end of the fixed term, this Agreement shall automatically be renewed for a period of

six months UNLESS it is terminated by either party with three months’ prior

notice.

8. The agreement shall be automatically renewed annually PROVIDED THAT / SO LONG
Agent has satisfactorily performed its duties established hereunder.

9. The design of the Articles may only be modified WITH the express written consent
of the Licensor.

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WORKSHEET 3.3 – Sentence rewrites

1. When the contract expires, the Distributor has to return all materials related to the
promotion and sale of the products to the Company. (UPON)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

2. The Landlord cannot enter the premises if it does not give the tenant 24 hours’ prior
notice. (UNLESS)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

3. The Franchisor cannot withhold its consent unless it has reasonable grounds for doing
so. (PROVIDING THAT)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

4. The Company may modify the prices provided that it notifies the Buyer in writing three
months in advance. (SUBJECT)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

5. The Consultant’s lack of compliance with the terms of the agreement led to litigation.
(FAILURE)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

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6. You will have to notify the Agent in writing 30 days in advance. (PROVIDE THE AGENT/
WRITTEN NOTICE)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

7. If the Contract terminates early, all amounts due to Manufacturer must be paid
immediately. (EVENT OF )
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

8. The Licensee can only sell the licensed products outside the Territory with the
Licensor’s prior written consent. (UNLESS)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

9. All orders placed by the Distributor will first have to be approved by the Company.
(SUBJECT)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

10. If the mortgagor fails to pay, the bank may take possession of the house. (DEFAULTS)
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................

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WORKSHEET 3.4 - Archaic reference words (Clauses 1-4)

Answer the following questions in your own words. DO NOT COPY FROM THE CLAUSES.
Clause One:
Kind of contract:........................................................................................................................................
Parties: .........................................................................................................................................................
“said statement” refers to .......................................................................................................................
1. How many times a year does the Principal have to send a report to the Agent indicating the

commission which it has to pay?

2. When does the Principal have to pay the Agent?

Clause Two:
Kind of contract:........................................................................................................................................
Parties: .........................................................................................................................................................
“aforementioned advance” refers to ...................................................................................................
3. Does the Licensee have to pay a minimum amount of money to the Licensor regardless of the

amount of products sold?

4. Where is that amount stipulated?

5. When do the rest of the royalties have to be paid?

Clause Three:
Kind of contract:........................................................................................................................................
Parties: .........................................................................................................................................................
“the same” refers to ..................................................................................................................................
6. When does the Purchaser have to pay for the goods?

7. When does the Purchaser have to pay if payment is made by invoice?

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Clause Four:
Kind of contract:........................................................................................................................................
“the aforesaid royalty” refers to ...........................................................................................................
8. What information will be used to calculate the amount of royalty that is due?

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WORKSHEET 3.5– Simplifying contract clauses

Complete the sentences below which explain the clauses in simpler language.
1. Clause one states that a party is not _________________________________ if it fails

________________________________________________ as a result of circumstances beyond
________________________________________________.

2. Clause two establishes that if one of the clauses is _________________________, the rest of
the contract will still_____________________________________________________________

3. Clause three provides that all disputes ____________________________ by arbitration.

4. Clause four stipulates that if the Licensee breaches _____________________ and does not
remedy _______________________________________________, _____________________________________
_________________________ provided that the Licensor ________________________________
_______________________________________________________________ .

5. Clause five establishes that the Distributor can only disclose the information it needs
in order to ______________________________________________________________________________

6. Clause six provides that this agreement _______________ and prevails ____________ any
other_______________________________________________________________.
*This clause is from a contract for the sale of a building.

7. Clause seven stipulates that XYZ is the only one that will be considered liable
________________________________________________________________________________________________

8. Clause eight establishes that if a party fails ____________________________________
_________________, that party will still be entitled to ________________________
_____________________________________________________________________________.

9. Clause nine establishes that the parties ______________________
_______________________________________________ provided that __________________
____________________________________________________________________.

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WORKSHEET 3.6 – Agency Agreement

Answer the following questions in your own words (DO NOT SIMPLY COPY THE CLAUSE),
indicating the clause where you found the answer.
1. What is the Agent’s main task?
Clause ______ establishes that ................................................................................................
........................................................................................................................................................
........................................................................................................................................................

2. Once an order is placed, who handles the actual sale of the goods?
Clause ______ stipulates that ….............................................................................................
........................................................................................................................................................
........................................................................................................................................................

3. Who determines the prices and terms of payment?
Clause _______ ..........................................................................................................................
........................................................................................................................................................
........................................................................................................................................................

4. Is the Agent ever allowed to collect money from the customers?
__________________________ clause ____, .................................................................
........................................................................................................................................................
........................................................................................................................................................

5. Who has to pay for the advertising materials? What other costs does this include?
Clause ____ ...................................................................................................................................
........................................................................................................................................................

6. Can the Agent represent other sailboat manufacturers in addition to the Principal?
Clause ____ ...................................................................................................................................
........................................................................................................................................................
........................................................................................................................................................

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7. How is the Agent’s commission calculated?
Clause ____ ...................................................................................................................................
........................................................................................................................................................
........................................................................................................................................................
8. How frequently and when will the Agent be paid its commission?
Clause ____ ..................................................................................................................................
........................................................................................................................................................
........................................................................................................................................................
9. Is the Agent paid for sales obtained by the Principal on its own without the Agent’s

intervention?
____________ , Clause ____..................................................................................................
........................................................................................................................................................
........................................................................................................................................................
10. In the event of a dispute, can one of the parties sue the other?
__________ , Clause ____.......................................................................................................
........................................................................................................................................................
........................................................................................................................................................

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WORKSHEET 3.7 - Analysing and explaining a contract

1. Analyse:
1. Type of agreement: _________________________________________________________________________________
2. Parties:
a) _____________________________________ Name: __________________________________________________________
b) _____________________________________ Name: _________________________________________________________
3. Purpose of the agreement _________________________________________________________________________
__________________________________________________________________________________________________________
4. Form of payment (if there is one) _________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________

2. Identify and simplify

1. As you read each clause, identify the subject and the main verb.

2. Ask yourself the following questions.

a) - Is it indicating an obligation, a right, a lack of obligation or is it different kind of
stipulation?

b) - Is there a condition or a contingency attached?

c) – Is it a standard type of clause (e.g. Assignment, Termination, Exclusion of liability,
Confidentiality, etc. - see p. 146)

d)-Is this clause important?

3. Simplify. Below in the right hand column is the type of language you should use to explain
your contract.

Written contract Simplified oral explanation

OBLIGATION: shall, undertakes, agrees has/have to; agrees to
to is responsible for
can / is entitled to / has the right to
RIGHT: may, is authorized to will
FUTURE SITUATIONS: shall (these words should never be used orally)-
REFERENCE WORDS: hereafter, herein, the
thereon, thereof, etc. / said / aforesaid
etc. provided that / only if (in the second part of
CONDITIONS: provided that, subject to, the sentence)
unless, without, etc.

CONTINGENCIES : in the event that, in the if (at the beginning of the sentence)
case/event of, etc. cannot
do/does not
PROHIBITION: shall not / may not / is not
authorized to

NON-PERFORMANCE: fails to / failure to /
defaults

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4. In your oral explanation, do not:
 read long lists- e.g. all samples, patterns, instruction books, technical pamphlets,
catalogues, advertising material and other materials and papers whatsoever
in the Distributor's possession relating to the Products.
 use here/there words or shall.
 Explain the following standard clauses: Force majeure, Non-waiver or Entire
agreement.

You should organize and structure your information and in your presentation,
introduce the point that you are going to explain before you talk about it... e.g.

 Now I am going to talk about the obligations of each of the two parties….
 Next, I am going explain how the franchisor is going to be paid.
 As a potential licensee, you should bear in mind /should be aware that …
 Article 6 establishes that if there is a breach, the non-breaching party can…

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