SSOR

Contracts

1. abide by v., to comply with; 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
prorat- ed 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. The sales associate gave his assurance that the missing keyboard would
be replaced the next day.
b. Her evident self-assurance made it easy to see why she was in charge of
the negotiations.
4. eancel v., to annul; to call off
a. Tha man canceled his magazine subscription and gol his money back.
b. When the concert was canceled, the singer sued to get her fee paid.
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., to hire; to involve someone or something
a. We engaged a salsa band to play at the reception.
b. Once we engaged Otto in the decision making for the project, he
became much more supportive.
7. establish v„ to institute permanently; to bring about
a. Through her many books and interviews, Dr. Wan established herself as
an
authority on conflict resolution.
b. The merger of the two companies established a powerful new
corporation.
e. 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 aven though I could have
exercised my option to quit.
9. party n., a pemon 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 of the first part generally has the advantage of preparing the
con- tract or agreement.
10. provislon n., a measure taken beforehand; a stipulation
a. The father made provisions for his children through his will.
b. The contract contains a provision to deal with how payments are
made it John loses his job.
resolve v., to deal with successfully; to declare
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. specify v.. to mention explicitly
a. Mary specified in the contract that har bill must be paid within 30 days.
b. The letter does not specify which attorney is handling our caae.
Short Conversations
Read the following conversations and see how the new words are used.

[hij Do you think we will evei resolve oui’ difiiculties with the coi puia‹ coi pany?
[W] I’m beginning to think that we should cancel our service and find another provider.
[M] Do we have any obligation to continue to pay them if we cancel our service?

[Wj Now that the new contract has been negotiated, we will have to abide by it very
closely. [Mj I’m not sure yet that this was a good agreement for us.
[W] Nevertheless, we gave our assurance we would fulfill the requirements.

[M] What does the new contract establish that the old one did
not? [Wj Both parties agreed to the salary freeze for this year.
[M] Then, we should specify our expectations for a raise next year.

[W] We must engage a subcontractor to complete the work.

[M] Is there a provision for a subcontractor in the contract?
[W] We can determine that by reviewing the terms of the contract.