The TOEIC Reading section often includes questions related to Understanding Sales Contract Obligations. This practice test will help you improve your skills in this area while preparing for the actual exam.
reading corporate financial projections is another crucial skill for TOEIC success. Let’s focus on sales contract obligations with this comprehensive practice test.
Part 1: Incomplete Sentences
-
The sales contract clearly __ the delivery terms for the goods.
A) stipulates
B) stipulating
C) stipulated
D) stipulation -
Both parties must __ by the agreed-upon payment schedule.
A) abide
B) adhere
C) follow
D) comply -
The buyer is __ for inspecting the goods upon receipt.
A) responsible
B) accountability
C) obligation
D) duty -
Any __ of the contract terms may result in legal action.
A) break
B) violation
C) breach
D) infringement -
The seller must provide a __ of quality for all products sold.
A) guarantee
B) warranty
C) assurance
D) promise -
The contract includes a __ clause to protect both parties.
A) confidentiality
B) secrecy
C) privacy
D) discretion -
All prices are subject to change without __ notice.
A) prior
B) advance
C) previous
D) earlier -
The buyer agrees to __ the goods within 30 days of delivery.
A) pay for
B) reimburse
C) compensate
D) settle -
Any __ to the contract must be made in writing and signed by both parties.
A) amendments
B) changes
C) modifications
D) alterations -
The seller shall __ the buyer of any potential delays in shipment.
A) inform
B) notify
C) alert
D) advise -
The contract __ a clause for dispute resolution through arbitration.
A) contains
B) includes
C) encompasses
D) involves -
Failure to meet the minimum order quantity may __ the agreement.
A) void
B) nullify
C) cancel
D) terminate -
The buyer must __ any defective products within 14 days of receipt.
A) return
B) send back
C) revert
D) dispatch -
The seller __ all rights to the intellectual property associated with the products.
A) retains
B) keeps
C) maintains
D) preserves -
Both parties agree to __ in good faith throughout the duration of the contract.
A) act
B) behave
C) conduct
D) perform -
The contract specifies the __ for resolving any disputes that may arise.
A) procedure
B) process
C) method
D) approach -
All goods must be packaged to __ damage during transportation.
A) prevent
B) avoid
C) stop
D) hinder -
The buyer is __ to provide accurate shipping information.
A) required
B) obligated
C) mandated
D) compelled -
Any __ in payment may result in late fees or penalties.
A) delay
B) postponement
C) deferment
D) procrastination -
The contract __ the quality standards that all products must meet.
A) outlines
B) delineates
C) describes
D) defines -
Both parties must maintain __ records of all transactions related to this agreement.
A) accurate
B) precise
C) exact
D) correct -
The seller shall __ the buyer with all necessary documentation for customs clearance.
A) provide
B) supply
C) furnish
D) equip -
Any __ of the confidentiality clause may result in immediate termination of the contract.
A) violation
B) infringement
C) breach
D) transgression -
The buyer must __ any issues with the products within the specified timeframe.
A) report
B) notify
C) inform
D) communicate -
Both parties agree to __ by all applicable laws and regulations.
A) abide
B) comply
C) conform
D) adhere -
The contract includes provisions for __ in case of force majeure events.
A) exemption
B) exclusion
C) exception
D) exoneration -
The seller must __ all products according to the agreed-upon specifications.
A) manufacture
B) produce
C) fabricate
D) create -
Any __ to extend the contract must be mutually agreed upon in writing.
A) decision
B) choice
C) option
D) selection -
The buyer is responsible for all __ and duties associated with importing the goods.
A) taxes
B) fees
C) charges
D) costs -
Both parties agree to __ the terms of this contract in strict confidence.
A) keep
B) maintain
C) hold
D) preserve
TOEIC Reading: Understanding Sales Contract Obligations
Part 2: Text Completion
Text 1:
The importance of understanding sales contract obligations cannot be overstated in today’s business environment. A sales contract is a legally binding agreement between a buyer and a seller that (31) __ the terms and conditions of a sale. It is crucial for both parties to (32) __ comprehend the contents of the contract to avoid potential disputes and ensure a smooth transaction.
One key aspect of a sales contract is the (33) __ of goods or services. This section should clearly define what is being sold, including quantity, quality, and any specific features or characteristics. Additionally, the contract should (34) __ the price, payment terms, and delivery details to prevent any misunderstandings.
-
A) outlines
B) outlining
C) outlined
D) outline -
A) thoroughly
B) casually
C) vaguely
D) partially -
A) description
B) depiction
C) illustration
D) portrayal -
A) specify
B) specifies
C) specified
D) specifying
Text 2:
Another critical component of sales contracts is the allocation of risk and liability. This section (35) __ which party is responsible for various aspects of the transaction, such as transportation costs, insurance, and potential damages. It is essential to carefully (36) __ these clauses to ensure fair distribution of responsibilities.
Many sales contracts also include provisions for dispute resolution. These clauses (37) __ how conflicts will be handled, whether through negotiation, mediation, or arbitration. By agreeing on a dispute resolution method in advance, both parties can (38) __ costly and time-consuming litigation in case of disagreements.
-
A) determines
B) determining
C) determined
D) determine -
A) negotiate
B) negotiating
C) negotiated
D) negotiates -
A) outline
B) outlining
C) outlined
D) outlines -
A) avoid
B) avoiding
C) avoided
D) avoids
Text 3:
Confidentiality is often a crucial aspect of sales contracts, especially in industries dealing with sensitive information or proprietary technology. These clauses (39) __ both parties to maintain the secrecy of certain information shared during the course of the transaction. It is important to (40) __ define what information is considered confidential and the duration of the confidentiality obligation.
Sales contracts may also include warranties and guarantees. These provisions (41) __ assurances about the quality, performance, or durability of the goods or services being sold. Buyers should pay close attention to these clauses to understand their rights and the (42) __ available if the product or service fails to meet the specified standards.
-
A) require
B) requires
C) required
D) requiring -
A) clearly
B) vaguely
C) ambiguously
D) obscurely -
A) provide
B) provides
C) provided
D) providing -
A) remedies
B) solutions
C) fixes
D) repairs
Text 4:
Understanding the termination clauses in a sales contract is equally important. These sections (43) __ the circumstances under which either party can end the agreement and the consequences of doing so. It is crucial to (44) __ review these terms to avoid unexpected penalties or legal complications.
Lastly, sales contracts often include force majeure clauses, which address unforeseen circumstances that may prevent either party from fulfilling their obligations. These clauses (45) __ events such as natural disasters, wars, or government actions that are beyond the control of the parties involved. Understanding these provisions helps both buyers and sellers (46) __ their risks and responsibilities in extraordinary situations.
-
A) outline
B) outlines
C) outlined
D) outlining -
A) carefully
B) casually
C) superficially
D) hastily -
A) cover
B) covers
C) covered
D) covering -
A) manage
B) managing
C) managed
D) manages
reading corporate financial projections is another crucial skill that complements understanding sales contract obligations. Both are essential for success in business English and the TOEIC exam.
Answer Key
Part 1: Incomplete Sentences
- A) stipulates
- A) abide
- A) responsible
- C) breach
- B) warranty
- A) confidentiality
- B) advance
- A) pay for
- A) amendments
- B) notify
- B) includes
- A) void
- A) return
- A) retains
- A) act
- A) procedure
- A) prevent
- B) obligated
- A) delay
- A) outlines
- A) accurate
- C) furnish
- C) breach
- A) report
- B) comply
- C) exception
- A) manufacture
- C) option
- A) taxes
- B) maintain
Part 2: Text Completion
31. A) outlines
32. A) thoroughly
33. A) description
34. B) specifies
35. A) determines
36. A) negotiate
37. D) outlines
38. A) avoid
39. B) requires
40. A) clearly
41. B) provides
42. A) remedies
43. B) outlines
44. A) carefully
45. B) covers
46. A) manage
TOEIC Practice Test: Sales Contracts and Obligations
This practice test covers various aspects of sales contract obligations, helping you prepare for the TOEIC Reading section. Remember to review your answers and study the vocabulary and grammar structures used in these questions to improve your performance on the actual exam.
