Unit 30 Contract Law

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

Key elements of contract formation OFFER OFFER + ACCEPTANCE = ENFORCEABLE ACCEPTANCE = ENFORCEABLE + CONTRACT + CONTRACTCONSIDERATION *enforceable contract = legally valid and binding (the courts can force the parties to abide by it ) courts can force the parties to abide by it )

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

Consideration Common law jurisdictions both parties to a contract must bring something to the bargain money anything of value money anything of value to the parties 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.) (consid.) (consid.) *Civil law jurisdictions – no consideration (a promise does not need consideration to be enforceable) consideration to be enforceable)

Different forms of a contract CONTRACT EXPRESSED IMPLIED 3 elements are 3 elements are implied (parking fees) implied (parking fees) written oral written oral 3 essential elements are present

An example of an implied contract from the South of England the town of ARUNDEL

Setting aside the contract Three different ways in which contracts can be set aside: 1. VOID (a contract never came into existance) 2. VOIDABLE (one or both parties may declare a contract ineffective at their wish) contract ineffective at their wish) 3. UNENFORCEABLE (lacks some particular type of evidence necessary for of evidence necessary for the enforcement) the enforcement)

Voidable contracts MISTAKE MISREPRESENTATION INCAPACITY DURESS UNDUE INFLUENCE

Remedies for breach of contract AWARD OF MONEY DAMAGES ORDER OF SPECIFIC PERFORMANCES

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

Vocabulary practice I – Word families Fill in the blanks by using the appropriate words from the text. VERBNOUNADJECTIVE 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) 1. Art Punuda Ponuda je prijedlog za sklapanje ugovora učinjen određenoj osobi koji sadrži sve bitne sastojke ugovora. Ponuda je prijedlog za sklapanje ugovora učinjen određenoj osobi koji sadrži sve bitne sastojke ugovora. 2. Art Prihvat ponude Punuda je prihvaćena kad ponuditelj primi izjavu ponuđenika da prihvaća ponudu. Punuda je prihvaćena kad ponuditelj primi izjavu ponuđenika da prihvaća ponudu. 3. Art 269. Činidba Objekt ugovorne obveze je činidba koja se može sastojati u davanju, činjenju, propuštanju ili trpljenju. Objekt ugovorne obveze je činidba koja se može sastojati u davanju, činjenju, propuštanju ili trpljenju.