Mastering TOEIC Reading: Essential Terms in Supplier Agreements

The TOEIC Reading section often includes questions related to business terminology, particularly those found in supplier agreements. Understanding these terms is crucial for success in the exam and real-world business contexts. Let’s explore some practice questions focusing on terms and conditions in business contracts to enhance your TOEIC Reading skills.

TOEIC Reading Practice Test: Supplier Agreement Terms

Part 1: Incomplete Sentences

Choose the best word or phrase (A, B, C or D) to complete each sentence.

1. The supplier must adhere to the agreed-upon __ for delivering goods.
   A) timeline
   B) timetable
   C) schedule
   D) calendar

2. Any breach of the confidentiality __ may result in legal action.
   A) clause
   B) section
   C) paragraph
   D) article

3. The __ of this agreement shall be for three years from the date of signing.
   A) duration
   B) length
   C) period
   D) time

4. All products must meet the quality __ specified in Appendix A.
   A) standards
   B) levels
   C) grades
   D) marks

5. The supplier agrees to __ the buyer against any third-party claims.
   A) indemnify
   B) protect
   C) shield
   D) cover

6. Payments will be made within 30 days of __ of a valid invoice.
   A) receipt
   B) reception
   C) receiving
   D) acceptance

7. Any __ to this agreement must be made in writing and signed by both parties.
   A) amendments
   B) changes
   C) modifications
   D) alterations

8. The supplier shall maintain adequate __ coverage as outlined in Section 8.
   A) insurance
   B) assurance
   C) security
   D) protection

9. All intellectual property rights shall __ with the original owner.
   A) remain
   B) stay
   C) continue
   D) persist

10. The buyer reserves the right to __ the contract with 60 days’ notice.
    A) terminate
    B) cancel
    C) end
    D) cease

11. Any __ arising from this agreement shall be resolved through arbitration.
    A) disputes
    B) conflicts
    C) disagreements
    D) arguments

12. The supplier must provide a __ for all goods supplied under this agreement.
    A) warranty
    B) guarantee
    C) assurance
    D) promise

13. Failure to meet the agreed __ may result in penalties.
    A) deadlines
    B) timelines
    C) schedules
    D) dates

14. The __ price for the goods shall be as stated in Schedule B.
    A) purchase
    B) buying
    C) acquisition
    D) procurement

15. Both parties agree to act in good __ throughout the duration of this contract.
    A) faith
    B) will
    C) intent
    D) trust

16. The supplier shall be responsible for all __ and taxes related to the delivery.
    A) duties
    B) fees
    C) charges
    D) costs

17. Any __ of this agreement by either party constitutes grounds for termination.
    A) violation
    B) infringement
    C) breach
    D) break

18. The buyer shall have the right to __ the supplier’s facilities upon reasonable notice.
    A) inspect
    B) examine
    C) check
    D) survey

19. All communications regarding this agreement shall be in __ form.
    A) written
    B) documented
    C) recorded
    D) inscribed

20. The supplier agrees to maintain strict __ regarding all aspects of this agreement.
    A) confidentiality
    B) secrecy
    C) privacy
    D) discretion

21. Any delay in delivery must be communicated to the buyer without undue __.
    A) delay
    B) lateness
    C) tardiness
    D) postponement

22. The __ of liability for the supplier shall not exceed the total contract value.
    A) limit
    B) cap
    C) ceiling
    D) maximum

23. All goods must be packaged in accordance with industry __ practices.
    A) standard
    B) normal
    C) usual
    D) common

24. The supplier shall provide monthly __ reports detailing the progress of orders.
    A) status
    B) update
    C) progress
    D) condition

25. Any __ shipments must be approved in writing by the buyer.
    A) partial
    B) incomplete
    C) fractional
    D) segmented

26. The agreement is subject to the __ laws of the country where the buyer is located.
    A) governing
    B) applicable
    C) relevant
    D) pertinent

27. Both parties agree to a mutual __ clause in case of force majeure events.
    A) exemption
    B) exclusion
    C) exception
    D) excusal

28. The supplier must maintain accurate __ of all transactions related to this agreement.
    A) records
    B) documents
    C) files
    D) logs

29. Any __ of the goods must be reported within 7 days of delivery.
    A) defects
    B) faults
    C) flaws
    D) imperfections

30. The __ party shall bear all costs associated with the return of rejected goods.
    A) defaulting
    B) responsible
    C) liable
    D) accountable

Key terms in supplier agreements for TOEIC Reading

Part 2: Text Completion

Read the texts and choose the best word (A, B, C or D) for each gap.

Text 1:

Supplier agreements are crucial documents in business relationships, outlining the terms and conditions under which goods or services will be provided. These contracts typically include several key __ (31) that protect both the supplier and the buyer. One essential element is the __ (32) clause, which specifies the quality standards that must be met. Another important aspect is the __ (33) schedule, detailing when and how payments should be made. Additionally, most agreements include a __ (34) clause, allowing either party to end the contract under specific circumstances.

31. A) components B) sections C) parts D) pieces
32. A) quality B) standard C) grade D) level
33. A) payment B) financial C) monetary D) fiscal
34. A) cancellation B) termination C) conclusion D) finalization

Text 2:

When negotiating supplier agreements, it’s important to pay attention to the __ (35) of liability. This clause limits the amount of damages that can be claimed in case of a breach. Another critical element is the __ (36) clause, which protects confidential information shared during the business relationship. Many contracts also include an __ (37) clause, requiring the supplier to protect the buyer from third-party claims. Lastly, a well-drafted agreement should have a clear __ (38) resolution process to handle any disputes that may arise.

35. A) limitation B) restriction C) constraint D) boundary
36. A) secrecy B) privacy C) confidentiality D) discretion
37. A) indemnification B) protection C) security D) safeguard
38. A) dispute B) conflict C) disagreement D) argument

Text 3:

The __ (39) of a supplier agreement typically outlines the specific products or services to be provided. It’s crucial to be as detailed as possible to avoid misunderstandings. The agreement should also specify the __ (40) of the contract, including any options for renewal. Many contracts include a __ (41) clause, which excuses parties from fulfilling obligations due to extraordinary events beyond their control. Lastly, the agreement should clearly state the __ (42) law that will govern the contract in case of legal disputes.

39. A) scope B) range C) extent D) breadth
40. A) duration B) length C) period D) time
41. A) force majeure B) act of God C) emergency D) unforeseen event
42. A) applicable B) relevant C) pertinent D) appropriate

Text 4:

A comprehensive supplier agreement should address __ (43) rights, clearly stating who owns any intellectual property created during the course of the contract. It’s also important to include __ (44) requirements, specifying what types and levels of insurance the supplier must maintain. The agreement should outline the process for __ (45) changes to the contract, typically requiring written consent from both parties. Finally, a well-drafted contract will include provisions for __ (46) reporting, ensuring that both parties stay informed about the progress of the work or deliveries.

43. A) intellectual property B) copyright C) patent D) trademark
44. A) insurance B) coverage C) protection D) security
45. A) amending B) modifying C) altering D) revising
46. A) regular B) periodic C) frequent D) constant

Answer Key

Part 1: Incomplete Sentences

1. C) schedule
2. A) clause
3. A) duration
4. A) standards
5. A) indemnify
6. A) receipt
7. C) modifications
8. A) insurance
9. A) remain
10. A) terminate
11. A) disputes
12. A) warranty
13. A) deadlines
14. A) purchase
15. A) faith
16. A) duties
17. C) breach
18. A) inspect
19. A) written
20. A) confidentiality
21. A) delay
22. B) cap
23. A) standard
24. A) status
25. A) partial
26. A) governing
27. C) exception
28. A) records
29. A) defects
30. A) defaulting

Part 2: Text Completion

31. B) sections
32. A) quality
33. A) payment
34. B) termination
35. A) limitation
36. C) confidentiality
37. A) indemnification
38. A) dispute
39. A) scope
40. A) duration
41. A) force majeure
42. A) applicable
43. A) intellectual property
44. A) insurance
45. A) amending
46. B) periodic

Understanding these key terms and their usage in supplier agreements is essential for success in the TOEIC Reading section. By practicing with these questions, you can improve your comprehension of terms and conditions in business contracts and enhance your overall performance in the TOEIC exam.

TOEIC Reading strategies for supplier agreement terms

By regularly practicing with such exercises and familiarizing yourself with common business terminology, you can significantly improve your performance in the TOEIC Reading section, particularly when dealing with questions related to supplier agreements and business contracts.