Unit 30Unit 30

Contract LawContract Law

General requirements for General requirements for contract formation: contract formation:

possessing possessing legal capacitylegal capacity

the object of the contract the object of the contract must be must be acceptable by the lawacceptable by the law

in some cases in some cases a particular form a particular form is is required (e.g. sales contracts)required (e.g. sales contracts)

Key elements of contract Key elements of contract formationformation

OFFER OFFER + + ACCEPTANCEACCEPTANCE = ENFORCEABLE = ENFORCEABLE + CONTRACT+ CONTRACTCONSIDERATIONCONSIDERATION

*enforceable contract = legally valid and binding (the*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 Agreements becoming contractscontracts

agreement agreement ++ intention to be CONTRACTintention to be CONTRACT legally boundlegally bound (legal consequences)(legal consequences)

COMMERCIAL FAMILY AND SOCIAL COMMERCIAL FAMILY AND SOCIAL AGREEMENTSAGREEMENTS AGREEMENTSAGREEMENTS

-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

ConsiderationConsiderationCommon law jurisdictionsCommon law jurisdictions

both parties to a contract must bringboth parties to a contract must bringsomething to the bargain something to the bargain

money anything of value money anything of value to the partiesto the parties

Eg. I Eg. IIEg. I Eg. IIParty A – a farm (consid.) Party C – clerical work (consid.)Party A – a farm (consid.) Party C – clerical work (consid.)Party B – a million dollars Party D – food and shelterParty B – a million dollars Party D – food and shelter (consid.) (consid.)(consid.) (consid.)

**Civil law jurisdictions Civil law jurisdictions – no consideration (a promise does not – no consideration (a promise does not needneed

consideration to be enforceable)consideration to be enforceable)

Different forms of a contractDifferent forms of a contractCONTRACTCONTRACT

EXPRESSED IMPLIEDEXPRESSED IMPLIED

3 elements are 3 elements are

impliedimplied (parking fees)(parking fees)

written oralwritten oral

3 essential elements are present3 essential elements are present

An example of an implied contractAn example of an implied contract

from the South of Englandfrom the South of Englandthe town of ARUNDELthe town of ARUNDEL

Setting aside the contractSetting aside the contract

Three different ways in which contracts canThree different ways in which contracts can

be set aside:be set aside:

1.1. VOIDVOID (a (a contractcontract never came into existance) never came into existance)

2.2. VOIDABLEVOIDABLE (one or both parties may declare a (one or both parties may declare a

contract ineffective at their wish)contract ineffective at their wish)

3. 3. UNENFORCEABLEUNENFORCEABLE (lacks some particular type (lacks some particular type

of evidence necessary for of evidence necessary for

the enforcement)the enforcement)

Voidable contractsVoidable contracts

MISTAKE

MISREPRESENTATION

INCAPACITY

DURESSUNDUE

INFLUENCE

Remedies for breach of Remedies for breach of contractcontract

AWARD OF MONEY

DAMAGES

ORDER OFSPECIFIC

PERFORMANCES

Essential expressionsEssential expressions

• to form/enforce/to form/enforce/ breach/enter into/set breach/enter into/set

asideaside a contracta contract• a breach of contract a breach of contract • considerationconsideration• offer and acceptanceoffer and acceptance• offeror and offereeofferor and offeree• an implied/expressed/an implied/expressed/ legally binding legally binding

contractcontract• valid; invalidvalid; invalid

• a void/voidable/a void/voidable/

unenforceable unenforceable contractcontract

• mistakemistake• misrepresentationmisrepresentation• duressduress• undue influence undue influence • incapacityincapacity• an order of specific an order of specific

performancesperformances

Vocabulary practice I – Word Vocabulary practice I – Word familiesfamilies

Fill in the blanks by using the appropriate words fromFill in the blanks by using the appropriate words from

the text. the text.

VERBVERB NOUNNOUN ADJECTIVEADJECTIVE

to enforceto enforce

avoidanceavoidance

performanceperformance ______________

Vocabulary practice II - CollocationsVocabulary practice II - Collocations

Choose one of the listed nouns for each of the followingChoose one of the listed nouns for each of the following

verbs. Use the text.verbs. Use the text.

a binding offer; requirements; legal capacity; a a binding offer; requirements; legal capacity; a contract; a contract; requirementscontract; a contract; requirements

to comply with to comply with ………………………………………………….….

to make to make ………………….………………….

to to fulfil………………fulfil…………………………

to enter into to enter into ……………………

to set………………to set………………asideaside

to to possess……………possess…………………

Translation practiceTranslation practice

Translate the following sentences from the Croatian Translate the following sentences from the Croatian ZOO (Zakon o obveznim odnosima)ZOO (Zakon o obveznim odnosima)

1.1. Art. 253. PunudaArt. 253. Punuda

Ponuda je prijedlog za sklapanje ugovora učinjen Ponuda je prijedlog za sklapanje ugovora učinjen određenoj osobi koji sadrži sve bitne sastojke određenoj osobi koji sadrži sve bitne sastojke ugovora.ugovora.

2.2. Art. 262. Prihvat ponudeArt. 262. Prihvat ponude

Punuda je prihvaćena kad ponuditelj primi izjavu Punuda je prihvaćena kad ponuditelj primi izjavu ponuđenika da prihvaća ponudu. ponuđenika da prihvaća ponudu.

3.3. Art 269. Činidba Art 269. Činidba

Objekt ugovorne obveze je činidba koja se može Objekt ugovorne obveze je činidba koja se može sastojati u davanju, činjenju, propuštanju ili sastojati u davanju, činjenju, propuštanju ili trpljenju.trpljenju.