Unit 16 Contract Law

Functions of Contract law Read the introductory paragraph, p. 156 and complete the notes about the functions of Contract law. to regulate the formation ____________ to provide grounds for the contracting parties to be __________ by the contract to provide grounds for the courts to ______ a contract to anser the questions about A) the existence of a___________ B) the b_____________ C) the c_____________ for the injuered party

What is a contract? – Fill in the gaps. agreement, obligation, consideration, capacity, fraud, illegal It is an agreement that creates a binding (1) ________ upon the parties. The essentials of a contract are as follows: mutual (2)_________; a legal (3)___________, which in most instances need not be financial, parties who have legal (4) ___________ to make a contract; absence of (5) ___________ or duress; and a subject matter that is not (6) _______ or against public policy.

Vocabulary work Do the exercise II, p. 155 in your book. Explain the phrases and translate them into Croatian Match the prases and the given definitions

General requirements for contract formation: possessing legal capacity (two of more parties) the object of the contract must be acceptable by the law in some cases a particular form is required, a contract made in writing (e.g. sales contracts)

Key elements of contract formation OFFER (offeror) + ACCEPTANCE (offeree) = ENFORCEABLE + CONTRACT CONSIDERATION *enforceable contract = legally valid and binding (the courts can force the parties to abide by it, they expressed the intention to be legally bound )

Consideration Common law jurisdictions both parties to a contract must bring something to the bargain money anything of value to the parties Eg. I Eg. II Party A – a farm (consid.) Party C – clerical work (consid.) Party B – a million dollars Party D – food and shelter (consid.) (consid.) *Civil law jurisdictions – no consideration (a promise does not need consideration to be enforceable)

Agreements becoming contracts + intention to be CONTRACT legally bound (legal consequences) COMMERCIAL FAMILY AND SOCIAL AGREEMENTS AGREEMENTS -presumed to be -has to be proved that contracts it was intended to be

Different forms of a contract EXPRESS IMPLIED 3 elements are implied written oral 3 essential elements are present

What form does a contract take? Fill in the gaps. Two words are too much. signed rights oral goods property In general, contracts may be either _______ or written. Certain types of contracts, however, in order to be enforeable, must be written and ________. These include contracts involving the sale and transfer of _________. Read the text, p. 156 (paragraph 2) and find more examples for written contracts.

Two examples of express contracts 1 Two examples of express contracts 1. parking fees - the South of England the town of ARUNDEL

EXPRESS versus IMPLIED CONTRACT An express contract is one in which the terms are expressed verbally, either orally or in writing. An implied contract can either be implied in fact or implied in law . A contract which is implied in fact is one in which the circumstances imply that parties have reached an agreement even though they have not done so expressly. (E.g. by going to a doctor a patient agrees that he will pay a fair price for the service. If he refuses to pay after being examined, he has breached a contract implied in fact.)

STRUCTURE OF THE CONTRACT Read the text, p. 157. and name the MAIN CLAUSE TYPES included in most contracts + the key information related to them: Parties – names, addresses, identification numbers, etc. Charges – price for the good or services / date of payment …..

DEFECTIVE CONTRACT, p. 157 - 158 Complete the presentation of the three different ways in which contracts can be set aside: VOID (a contract never came into existance, lacks _______ _____________ and is therfore ____________) VOIDABLE (initially valid contract can be annulled by the court, on the grounds of _______, ______, __________, ________, ___________) 3. UNENFORCEABLE (lacks some particular type of evidence, a tehnical defect, e.g. _________________)

Voidable contracts MISTAKE UNDUE INFLUENCE DURESS MISREPRESENTATION INCAPACITY

The end of a Contract, p. 158 Study the ways in which the terms of a contract can be discharged. Complete the English terms: a) Ispunjenje ugovora (ugovoren posao je realiziran) = _________________________ b) Prestanak ugovora zbog povrede odredbi ugovora c) Obostrano odustajanje od ugovora d) Prestanak ugovora zbog nemogućnosti ispunjenja obveza

Remedies for breach of contract The primary remedy is to CLAIM DAMAGES If not adequate SPECIFIC RELIEF ORDER OF SPECIFIC PERFORMANCES AWARD OF MONEY DAMAGES INJUNCTION CONTRACT RESCISSION Explain each of the remedies. CONTRACT MODIFICATION

Some essential expressions to form/enforce/ breach/enter into/set aside a contract a breach of contract consideration offer and acceptance offeror and offeree an implied/expressed/ legally binding contract valid; invalid a void/voidable/ unenforceable contract mistake misrepresentation duress undue influence incapacity an order of specific performances

Vocabulary practice I – Word families Fill in the blanks by using the appropriate words from the text. VERB NOUN ADJECTIVE to enforce avoidance performance _______

Vocabulary practice II - Collocations Choose one of the listed nouns for each of the following verbs. Use the text. a binding offer; requirements; legal capacity; a contract; a contract; requirements to comply with …………………………. to make …………………. to fulfil…………………… to enter into ………… to set………………aside to possess………………

Translation practice Translate the following sentences from the Croatian ZOO (Zakon o obveznim odnosima) Art. 253. Punuda Ponuda je prijedlog za sklapanje ugovora učinjen određenoj osobi koji sadrži sve bitne sastojke ugovora. Art. 262. Prihvat ponude Punuda je prihvaćena kad ponuditelj primi izjavu ponuđenika da prihvaća ponudu. Art 269. Činidba Objekt ugovorne obveze je činidba koja se može sastojati u davanju, činjenju, propuštanju ili trpljenju.