1. Contract Law

2. Contractual formation
OFFER +
ACCEPTANCE
ESSENTIAL
CONSIDERATION PRECONDITIONS
FOR AN
INTENTION TO BE ENFORCEABLE
LEGALLY BOUND CONTRACT
LEGAL CAPACITY

3. LEGAL CAPACITY
Lawful capacity for an entity in its own name to enter into binding contracts, to sue and to be sued.
Who lacks legal capacity?
MINORS (under 18)
MENTALLY INCAPACITATED PEOPLE
PEOPLE UNDER THE INFLUENCE OF DRUGS OR ALCOHOL
If a contract is made with sb who lacks the LEGAL CAPACITY to enter into contract, that contract is said to be VOIDABLE and can be anulled.

4. 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)

5. Intention to be legally bound
agreement +
intention to be CONTRACT
legally bound
COMMERCIAL FAMILY AND SOCIAL
AGREEMENTS AGREEMENTS
-presumed to be has to be proved that
contracts it was intended to be

6. Different forms of a contract
EXPRESS IMPLIED
3 elements are
implied/presumed
written oral
3 essential elements are present

7. Setting aside the contract
Three different ways in which contracts can
be set aside:
VOID (a contract never came into existance)
VOIDABLE (one or both parties may declare a
contract ineffective at their wish)
UNENFORCEABLE (lacks some particular type of
evidence necessary for the
enforcement – eg. lapse of time, no
signature, not in writing- courts
cannot force the parties to abide by it)

8. VOIDABLE CONTRACTS Match the terms with their definitions.
MISTAKE
A) A threat of harm to compel a person to do sth against his or her will or judgement (eg. threatening to kill the other party if he didn’t sign a contract)
MISREPRE-
SENTATION
B) The restricted capacity of either natural or artificial person to either enforce contracts or have them enforced against them (eg. small children; mentally incapacitated people).
DURESS
C) A false statement of fact made by one party to another party and has the effect of inducing these party into the contract(eg.false statement of promises)
UNDUE
INFLUENCE
D) One person taking advantage of a position of another person (eg. parent-child; solicitor-client).
INCAPACITY
E) An incorrect understanding by one or more parties to a contract.

9. Types of legal contracts
Sale(s) agreement
Loan agreement
Lease agreement
Contract of employment
Shareholder”s agreement
Manufacturing licence agreement
Franchise agreement
Shipping contract

10. Structure of a Contract – express terms Match the clauses with their definitions. Indemnity, Dispute Resolution, Payment Provisions, Force Majeure, Term of Contract, Termination Provisions, Parties, Confidentiality, Warranties, Assignment, Applicable Law
_____ – clause in which the names and addresses of all the contracting parties are stated
_____ – clause setting out the exact price to be paid for the goods or services provided and the date for payment to be made
_____ – clause stating the length of the contract and the options to continue it
_____ – clause stating the circumstances under which the parties can terminate the contract
_____ – clause identifying the information which should be treated as private and be protected and the circumstances in which it can be used or disclosed.
_____ – clause outlining procedure to be followed if the parties have a dispute
_____ – clause referring to provision of certain warranties by the party providing goods concerning the delivery of the goods or services
_____ – clauses expressing an obligation to compensate the indemnified party by making a money payment for some defined loss or damage
_____ – clause designed to protect against failures to perform contractual obligation where and when the performance of the contract is impossible through an unavoidable event beyond the party's control, such as a natural disaster or civil unrest.
_____ – clause prohibition or permitting transferring the contractual rights and responsibilities to another party
_____ – clause indicating which law governs the contract

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

12. Essential expressions
to form/enter into/
breach/enforce/set aside/terminate
a contract
a breach of contract
consideration
offer and acceptance
an implied/express/
legally binding contract
to set a contract aside
confidentiality = diskrecija
Warranty = jamstvo
Force Majeure = visa sila
Assignment = ustupanje, prijenos
a void/voidable/
unenforceable contract
Mistake = zabluda
misrepresentation = lažno prikazivanje činjenica
duress = prisila
undue influence = protuzakoniti utjecaj
incapacity = sposobnost
an order of specific performances = izvrsenje ugovora u naturi
indemnity = obestecenje

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

14. 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………………

15. Translation practice Translate the following sentences into English:
Ako ugovor ne ispunjava osnovne uvjete bez pravnog je učinka i ne može dovesti do stjecanja zakonskih prava i dužnosti.
Ugovor je poništiv i može se anulirati na zahtjev jedne od strana u slučaju prevare, lažnog prikazivanja, protuzakonitog utjecaja ili prinude.