1. Lesson Eleven: Terms of Payment I

2. Listening adopt v. [ə’dɔpt] practice n. [‘præktis] various adj. [‘vɛəriəs] circumstance n. [‘sə:kəmstəns] transaction n. [træn’zækʃən] D/A D/P concrete adj. [‘kɔnkri:t] expense n. [iks’pens]

3. After listening, please choose the correct answers: • A: I hear that you have adopted some international practices and accept ______ kinds of payment terms. Is it true? • B: Quite right. But that all depends on circumstances. • A: As this is our first _ _______ with you, we hope you will allow us some ______ payment terms. Will you accept payment by _______? • B: Sorry, it won’t do. Payment by ________ is our usual practice of doing business with our ______ customers. • A: How about _______ then? Can you accept it? • B: Perhaps we shall see whether we can agree to D/P terms when we come to concrete business. But for the moment we must insist on our ______ form. • A: But payment by L/C will put us to a lot of _______. Besides, it gives us much more _______. • B: It can’t be helped. various transaction easier D/A L/C new D/P usual difficulties expenses

4. Listening settle v. [‘setl] terms of payment usual practice accept v. [ək’sept] confirmed adj. [kən’fə:md] irrevocable adj. [I’revəkəbl] payable adj. [‘peiəbl] exception n. [ik’sepʃən] consider v. [kən’sidə] sight n. [sait]

5. After listening, please decide whether the statements are true(T) or false (F): • ( ) 1. Usually, the seller can only accept payment by L/C. • ( ) 2. The buyer prefers to pay by D/P. • ( ) 3. The seller doesn’t agree to pay by D/P. • ( ) 4. The buyer proposes to pay by D/P at 30 days sight. • ( ) 5. The seller can accept • payment by D/P at sight. T F F F T

6. Leading in: • Seller: Payment by L/C is our usual practice. • Buyer: How about D/P then? Can you accept it? What are they discussing?

7. New words learning. • reception [] n. settle [] v. • confirmed [] adj. irrevocable [] adj. • payable [] adj. document [] n. • shipping documents practice [] n. • frankly [] adv. cost [] n. v. • deposit [] n. tie up • aware [] adj. additional [] adj. • protection [] n. guarantee [] n./v. • case [] n. sight [] n. • demand [] v./n. available [] adj. • draft [] n. • prior [] adj. • shipment [] n. • dispatch [] v.&n. • promptly [] adv.

8. shipping documents • confirmed, irrevocable letter • of credit payable • We only accept payment by • confirmed, irrevocable letter of • credit payable against shipping • documents.

9. practice • It’s our usual practice to • accept payment by L/C.

10. deposit • pay a deposit. • When we open a letter of credit • with a bank, we’ll have to pay • a deposit.

11. tie up • That’ll tie up a lot of money.

12. aware • be aware of • You must be aware that opening an L/C will tie up a lot of money.

13. banker’s guarantee • the additional protection of the banker’s guarantee. • You must be aware that a confirmed, irrevocable letter of credit gives us the additional protection of the banker’s guarantee.

14. draft • draft at sight • L/C available by draft at sight. • We usually demand payment by L/C available by draft at sight.

15. prior to • Please open the L/C one • month prior to the shipment.

16. dispatch • dispatch the goods • I hope that the goods can be dispatched promptly

17. Listening Since the price has been settled, the two men will go on to the terms of payment. Mr. Black could accept D/P or D/A. A confirmed, irrevocable letter of credit gives us the additional protection of the banker’s guarantee..

18. What are the two men talking about? What price term does Mr. Chen can accept? What’s the usual practice? What ‘s the price terms ageed at last? 2014/11/27

19. Say the long sentences in the conversation with the help of the key words. • 1. frankly speaking • 2. pay a deposit • 3. tie up our money • 4. supply sb with sth • 5. be aware • 6. the banker’s guarantee • 7. have no choice but to do sth • 8. prior to

20. Make dialogues (pair work) 1 Make dialogues (Group work) role play 2

21. Summarizing • Key sentences: • (1) It will help us greatly if you could • accept D/P or D/A. • (2) It’s our usual practice to accept payment by L/C. • (3) paying by L/C would increase the cost of our imports. • (4) I’ll have no choice but to accept your terms of payment. • (5) Please open the L/C one month • prior to the shipment. • (6) I hope that the goods can be • dispatched promptly after you get • our L/C.

22. Homework Recite the conversation. Make up a new dialogue on your own and find a partner to act it out .