๐Ÿ“˜TOEIC 700 Practice
TOEIC 700 ยท LESSON 5 OF 20

Contracts, Agreements & Legal Terms

TOEIC Skills Practiced: Listening Parts 3โ€“4 ยท Reading Parts 5โ€“7 | Grammar Focus: Passive Voice

๐ŸŽฏ TOEIC 700 Level ๐Ÿ“– 10 Key Words ๐Ÿ“ Parts 5โ€“7 + Listening
โฌ‡ Download Full Lesson (.docx)

๐Ÿ”ฅ Warm-Up (5 minutes)

  • Have you ever signed a contract in English (a lease, a job offer, a service agreement)? What was confusing about it?
  • Why do you think companies use very formal, careful language in contracts?

๐Ÿ“– Key Vocabulary

EnglishTypeExample Sentence
contractn.Both parties signed the contract yesterday.
clausen.Section 4 contains the termination clause.
terminatev.Either party may terminate the agreement with 30 days' notice.
breachv./n.Late delivery is considered a breach of contract.
obligationn.The supplier has an obligation to deliver on time.
execute / signv.The agreement was executed by both directors.
amendmentn.Any amendment must be made in writing.
partyn. (legal)Both parties agreed to the new terms.
bindingadj.This is a legally binding agreement.
liabilityn.The company's liability is limited to $10,000.

๐Ÿง  Grammar / Strategy Focus

๐Ÿ“

Passive voice (be + past participle) is used when the action or the receiver is more important than who does it โ€” common in contracts, legal, and business texts: "The contract was signed by both parties." "All amendments must be approved in writing."

โœ๏ธ Part 5 Practice

Incomplete Sentences

Question 1
The contract ______ by both parties last Friday.
(A)signed
(B)was signed
(C)sign
(D)has sign
Question 2
Any changes to this agreement ______ in writing.
(A)must make
(B)must be made
(C)must making
(D)must made
Question 3
The new policy ______ to all employees next month.
(A)will announce
(B)will be announced
(C)announces
(D)announced
Question 4
This contract ______ by our legal team before it is signed.
(A)is reviewing
(B)is reviewed
(C)reviews
(D)review
Question 5
The meeting minutes ______ to all attendees yesterday.
(A)sent
(B)were sent
(C)send
(D)sending

๐Ÿ“ Part 6 Practice

Text Completion (Subject: Contract Renewal Notice)

This is to inform you that your service contract with us (1) on August 31. If you wish to renew, the renewal form (2) by August 15. Please note that all terms (3) carefully before signing, as several clauses (4) since last year.

Blank (1)
(A)expire
(B)expires
(C)is expiring
(D)has expire
Blank (2)
(A)must submit
(B)must be submitted
(C)must submitting
(D)must submitted
Blank (3)
(A)should be read
(B)should read
(C)should reading
(D)should have read
Blank (4)
(A)have been updated
(B)have updated
(C)updates
(D)will update

๐Ÿ“ฐ Part 7 Practice

Reading Comprehension

Before signing any business contract, it is important to review every clause carefully, especially those related to payment terms, delivery deadlines, and termination conditions. A well-written contract clearly states the obligations of each party and what happens if one party breaches the agreement. At Minh Chau Trading, all contracts over $10,000 must be reviewed by the legal department before they are signed by a company director. This policy was introduced two years ago after a supplier dispute cost the company nearly $50,000 due to an unclear delivery clause. Since then, no similar disputes have occurred, and contract-related delays have been reduced by half.

Question 1
What should be reviewed carefully before signing a contract?
(A)Only the company logo
(B)Payment terms, deadlines, and termination conditions
(C)The number of pages
(D)The font used
Question 2
What does a well-written contract clearly state?
(A)Company history
(B)Each party's obligations
(C)Employee salaries
(D)Marketing strategy
Question 3
What must happen to contracts over $10,000 at Minh Chau Trading?
(A)They must be translated
(B)They must be reviewed by legal before signing
(C)They must be signed by all employees
(D)They must be sent to clients twice
Question 4
Why was this policy introduced?
(A)A new law required it
(B)A supplier dispute caused a financial loss
(C)A director requested it
(D)A client complained

๐ŸŽง Listening Practice

Conversation (Part 3 style)

Teacher: read the script aloud twice (or record it) at natural speed, then ask students the questions below.

Man: Have you had a chance to look over the new supplier contract?

Woman: Yes, I reviewed it this morning. There's one clause about delivery deadlines that isn't very clear.

Man: Really? Which part exactly?

Woman: Section 4 โ€” it doesn't say what happens if the supplier is late. We should ask legal to add a penalty clause before we sign.

Man: Good catch. I'll send it to legal today and ask them to get back to us by Thursday.

Question 1
What is the woman concerned about?
(A)The price of the contract
(B)An unclear delivery clause
(C)A missing signature
(D)The contract's length
Question 2
What does the woman suggest?
(A)Canceling the contract
(B)Adding a penalty clause
(C)Signing immediately
(D)Contacting the supplier
Question 3
What will the man do next?
(A)Sign the contract
(B)Call the supplier
(C)Send it to legal
(D)Reject the contract

๐Ÿ”‘ Answer Key

Part 5
1. B 2. B 3. B 4. B 5. B
Part 6
1. B 2. B 3. A 4. A
Part 7
1. B 2. B 3. B 4. B
Listening
1. B 2. B 3. C

Want to teach this offline, print it, or adapt it for your class?

โฌ‡ Download Full Lesson (.docx)