TOEIC Reading skills are crucial for success in the exam. Let’s practice with a focused test on Terms And Conditions In Business Contracts. This practice set will help you improve your vocabulary and comprehension in a business context.
reading documents related to corporate restructuring
Part 1: Incomplete Sentences
Choose the best word or phrase to complete each sentence.
-
The contract stipulates that payment must be made within 30 days of __ of goods.
A. delivery
B. deliverance
C. deliver
D. delivering -
Any breach of the __ outlined in this agreement may result in termination.
A. terms
B. conditions
C. clauses
D. All of the above -
The __ party shall be responsible for all costs associated with shipping.
A. sending
B. receiving
C. contracting
D. negotiating -
All disputes arising from this contract shall be settled through __ before resorting to litigation.
A. arbitration
B. meditation
C. negotiation
D. confrontation -
The __ of this agreement is five years, subject to renewal upon mutual consent.
A. duration
B. length
C. period
D. time -
Any modifications to this contract must be made in writing and __ by both parties.
A. signed
B. agreed
C. approved
D. acknowledged -
The supplier __ to maintain quality standards as specified in Appendix A.
A. agrees
B. promises
C. swears
D. guarantees -
Failure to comply with the terms of this agreement may result in __ damages.
A. liquid
B. liquidated
C. liquefied
D. liquidating -
The buyer reserves the right to __ the contract if the goods are not delivered by the agreed date.
A. terminate
B. finish
C. end
D. conclude -
All intellectual property developed during the course of this project shall remain the __ of the company.
A. ownership
B. belonging
C. property
D. possession -
The __ clause protects both parties from liability in case of unforeseen events beyond their control.
A. force majeure
B. act of God
C. unavoidable circumstance
D. unexpected occurrence -
Any __ of confidential information will be considered a material breach of this agreement.
A. disclosure
B. revealing
C. exposure
D. uncovering -
The contract includes a __ clause, allowing either party to end the agreement with 30 days’ notice.
A. termination
B. cancellation
C. conclusion
D. finalization -
All payments shall be made in US dollars, unless otherwise __ in writing.
A. stated
B. mentioned
C. noted
D. referred -
The __ party shall bear all costs associated with the preparation of this agreement.
A. initiating
B. proposing
C. drafting
D. originating -
Any delay in payment will incur interest at a rate of 2% per month on the __ balance.
A. outstanding
B. remaining
C. unpaid
D. due -
The agreement shall be __ by and construed in accordance with the laws of the State of California.
A. governed
B. ruled
C. controlled
D. managed -
Neither party may __ this agreement without the prior written consent of the other party.
A. assign
B. transfer
C. delegate
D. convey -
The __ date of this contract shall be the date of the last signature hereto.
A. effective
B. starting
C. commencing
D. beginning -
Any __ to the terms of this agreement must be mutually agreed upon in writing.
A. amendments
B. changes
C. modifications
D. alterations -
The contractor agrees to __ the client against any claims arising from the use of the delivered product.
A. indemnify
B. protect
C. shield
D. guard -
All notices required under this agreement shall be delivered in writing by __ mail or email.
A. certified
B. registered
C. express
D. priority -
The __ of this agreement supersedes all prior understandings between the parties.
A. execution
B. signing
C. finalization
D. completion -
In the event of a dispute, the __ party shall be entitled to recover reasonable attorney’s fees.
A. prevailing
B. winning
C. successful
D. victorious -
The client retains the right to __ the quality of work at any stage of the project.
A. inspect
B. examine
C. check
D. review -
Any __ of this agreement by either party shall not be deemed a waiver of any subsequent breach.
A. violation
B. infringement
C. breach
D. contravention -
The contractor shall maintain adequate insurance coverage as __ in Schedule B of this agreement.
A. outlined
B. detailed
C. specified
D. described -
All __ arising from or relating to this agreement shall be resolved through binding arbitration.
A. disputes
B. disagreements
C. conflicts
D. controversies -
The __ contained herein constitute the entire agreement between the parties.
A. terms
B. conditions
C. provisions
D. stipulations -
This agreement may be executed in __, each of which shall be deemed an original.
A. counterparts
B. duplicates
C. copies
D. versions
Business contract terms and conditions document
Part 2: Text Completion
Read the following passages and choose the best word or phrase to fill each blank.
Passage 1
Contract negotiation is a critical skill in business. When entering into discussions, it’s important to (1)__ your objectives clearly. This includes understanding your (2)__ position and being prepared to make reasonable compromises. Always ensure that the terms and conditions are (3)__ in writing to avoid misunderstandings later. Remember, a well-drafted contract should be (4)__ to both parties, creating a win-win situation.
-
A. define
B. obscure
C. hide
D. confuse -
A. financial
B. negotiating
C. personal
D. legal -
A. spoken
B. implied
C. documented
D. assumed -
A. beneficial
B. detrimental
C. irrelevant
D. insignificant
Passage 2
Confidentiality clauses are (5)__ in many business contracts. These provisions help protect (6)__ information from being disclosed to unauthorized parties. It’s crucial to clearly (7)__ what constitutes confidential information and specify the (8)__ for any breaches of confidentiality.
-
A. uncommon
B. standard
C. unnecessary
D. illegal -
A. public
B. sensitive
C. unimportant
D. general -
A. define
B. obscure
C. ignore
D. misrepresent -
A. rewards
B. benefits
C. consequences
D. advantages
Passage 3
Intellectual property rights are often a (9)__ concern in business contracts. It’s important to clearly (10)__ who owns any intellectual property created during the course of the agreement. This may include patents, trademarks, or (11)__ works. The contract should also specify how these rights will be (12)__ and what happens to them upon termination of the agreement.
-
A. minor
B. major
C. trivial
D. insignificant -
A. dispute
B. ignore
C. stipulate
D. overlook -
A. copyrighted
B. stolen
C. borrowed
D. rented -
A. ignored
B. protected
C. violated
D. shared
Passage 4
Dispute resolution clauses are essential in business contracts to (13)__ how disagreements will be handled. Many contracts specify (14)__ as the preferred method, as it can be faster and less expensive than litigation. It’s also common to include a (15)__ clause, which determines which jurisdiction’s laws will apply in case of a dispute. Finally, a (16)__ clause may be included to limit the amount of damages that can be claimed.
-
A. complicate
B. outline
C. ignore
D. exacerbate -
A. confrontation
B. litigation
C. arbitration
D. avoidance -
A. governing law
B. irrelevant law
C. minor law
D. unimportant law -
A. expansion
B. limitation of liability
C. increase
D. extension
Answer Key
Part 1: Incomplete Sentences
- A
- D
- B
- A
- A
- A
- D
- B
- A
- C
- A
- A
- A
- A
- C
- C
- A
- A
- A
- C
- A
- B
- A
- A
- D
- C
- C
- A
- C
- A
Part 2: Text Completion
- A
- B
- C
- A
- B
- B
- A
- C
- B
- C
- A
- B
- B
- C
- A
- B
This practice test focuses on terms and conditions in business contracts, a crucial topic for TOEIC test-takers. By mastering these vocabulary items and concepts, you’ll be better prepared for the Reading section of the TOEIC exam. Remember to review any unfamiliar terms and practice regularly to improve your skills.
