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Unit 3

Formalization of contract

Yoon: How do you feel about this claim matter, Mr. Peters?
Peters: Yes, I agree with you. It is a really good idea to include the articles of arbitration in the
contract for both parties. This will benefit us in the event that we have to settle anything in the
future.
Yoon: We will prepare the draft contract as soon as possible. Rest assured that we will have a
good clause regarding the articles for arbitration.
Park: All right. In conclusion, we’ve agreed to the general outline of all the terms and conditions
in this negotiation. We are all set for contract drafting.
Peter: Well we’ve finally made it to the final stage, Director Park. I’m so glad. It took us a long
time to settle all our demands. Finally, we’re closing the deal.
Park: This won’t take a long time anymore. We would like to prepare a formal contract before
you leave Korea. That way, you can go back to your country without any worries.
Peters: Sure, I’d appreciate that, Mr. Park. Thanks!

1. What business aspects do you really scrutinize in contract deals? Why?

Sample answer:
I’m very particular about the penalties. This is not because we are not confident about
meeting deadlines. It’s because we don’t want to be taken advantage of and we only
wish for fairness.

2. What is your most memorable contract deal? What makes it stand out?

Sample answer:
The most memorable deal was the one with Mega World Ventures. It was memorable because
it was our biggest deal ever and the whole company was so glad when we finally closed it.

3. What tips can you give to amateur business people regarding contract for-
malization?

Sample answer:
First, both parties should have a clear understanding of what the other wants from
the deal. Both parties should be satisfied. The draft has to be prepared by a competent
team by one of the companies, but parties should review this draft. Finally, the lawyers

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