Contract Law

by Snježana Husinec

Contractual formation

OFFER + ACCEPTANCE = ENFORCEABLE + CONTRACTCONSIDERATION

*enforceable contract = legally valid and binding (the courts can force the parties to abide by it )

Different forms of a contract

CONTRACT

EXPRESS IMPLIED

3 elements are

implied/presumed written oral

3 essential elements are present

Consideration

Common law jurisdictions

both parties to a contract must bringsomething to the bargain

money anything of value to the parties

Eg. I Eg. IIParty 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)

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

legally bound

Setting aside the contract

Three different ways in which contracts canbe set aside: 1. VOID (a contract never came into existance)

2. VOIDABLE (one or both parties may declare a

contract ineffective at their wish)

3. UNENFORCEABLE (lacks some particular type

of evidence necessary for the enforcement)

VOIDABLE CONTRACTSMatch 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)

UNDUEINFLUENCE

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.

Remedies for breach of contract

AWARD OF MONEY

DAMAGES

ORDER OFSPECIFIC

PERFORMANCES

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

• a void/voidable/ unenforceable

contract• mistake• misrepresentation• duress• undue influence • incapacity• an order of specific

performances

Vocabulary practice I – Word formation

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 followingverbs. 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 into English:

1. Ako ugovor ne ispunjava osnovne uvjete bez pravnog je učinka i ne može dovesti do stjecanja zakonskih prava i dužnosti.

2. Ugovor je poništiv i može se anulirati na zahtjev jedne od strana u slučaju prevare, lažnog prikazivanja, protuzakonitog utjecaja ili prinude.