Contract.

Slides:



Advertisements
Similar presentations
Contract.
Advertisements

Section 6.1 Transferring and Ending Contracts.
Business Law: Ch 8 Consideration.
Contract Presentation.. Offer and Acceptance Questions: 1.What are the requirements of an offer? 2.How are acceptances Created? 3.What are the elements.
Copyright © 2009 by Pearson Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany CONTEMPORARY BUSINESS AND ONLINE COMMERCE LAW 6 th Edition.
THE LEGAL ENVIRONMENT OF BUSINESS © 2009 Pearson Education, Inc. publishing Prentice Hall Ch The Legal Environment of Business A Critical Thinking.
Chapter 9 Nature of Traditional and Online Contracts
© OnCourse Learning Chapter 7 : Contract Law. © OnCourse Learning A legally enforceable agreement to do (or not to do) a particular thing.
Lecturer: Miljen Matijašević G10, room 6, Tue 15:30-16:30 Session 6, 25 Nov 2014.
 5 Parts to be Legal and Valid  Offer and Acceptance: Both parties bring something to the table to offer in a contract.
Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics.
© 2015 OnCourse Learning Chapter 6 Real Estate Contracts.
P A R T P A R T Contracts Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent 3 McGraw-Hill/Irwin.
Chapter 7 – How Contracts Arise
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
A General Introduction to Contract. Definition of a contract A contract is an agreement between competent parties based on the genuine assent of the parties,
THE INDIAN CONTRACT ACT (ICA), 1872
Real Estate Contracts.
CONTRACT LAW. Promissory agreement between two or more persons that creates, modifies, or destroys a legal relation. Legally enforceable promise to do.
© 2010 by Cengage Learning Chapter 7 ________________ Contract Law.
English for Tax Law III Revision. Wills and Inheritance Inheritance Law (sometimes called Wills and Probate) is concerned with the ___________ of a person’s.
CONTRACTS. CHAPTER 4: What is a Contract? Contract is any agreement enforceable by law. Not all agreements are contracts Agreeing to take out the trash.
Real Estate Principles and Practices Chapter 6 Contracts and Business Law © 2014 OnCourse Learning.
Factors Affecting Contracts Ending a Contract
$200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 Genuine Assent Consideration.
Contract Basics Business Law. From tort law to contract law TortContract What binds individuals Laws of society, as defined by statutes and precedents.
© 2004 West Legal Studies in Business A Division of Thomson Learning 1 I. Introduction I. Introduction II. Elements of a contract II. Elements of a contract.
Section 4.1 Agreements and Contracts Section 4.1 Agreements and Contracts A contract is any agreement enforceable by law.
Introduction to Contracts. “The whole duty of government is to prevent crime and to preserve contracts.” Lord Melbourne, British Prime Minister.
THE LEGAL ENVIRONMENT OF BUSINESS A Critical Thinking Approach Fourth Edition Nancy K. Kubasek Bartley A. Brennan M. Neil Browne Nancy K. Kubasek Bartley.
Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent © 2010 The McGraw-Hill Companies, Inc. All rights.
How Contracts Arise What Are Contracts? Any agreement enforceable by law.
Contract Law: A Beginning CHAPTER SIX. 6 | 2 Copyright © Houghton Mifflin Company. All rights reserved. What a Contract Is A contract is a legally enforceable.
CHAPTER 6 REVIEW 6.1: HOW TO END A CONTRACT 6.2: VOIDABLE CONTRACTS AND REMEDIES.
1. 2 BUT FIRST SOME ADDITIONAL BUT IMPORTANT DEFINITIONS AND LEGAL CONCEPTS.
Unit 30 Contract Law. General requirements for contract formation: possessing legal capacity possessing legal capacity the object of the contract must.
Week 04 Agreements and Contracts. Contracts A contract is a legally enforceable agreement between two or more competent persons. A valid contract is one.
Contract Law by Snježana Husinec.
THE INDIAN CONTRACT ACT, Section 2 (h) defines a contract as “ an agreement enforceable by law” Thus to make a contract there must be An agreement.
Real Estate Principles and Practices Chapter 6 Contracts and Business Law © 2010 by South-Western, Cengage Learning.
Understanding Business and Personal Law Consideration Section 8.1 Consideration Pre-Learning Question Why is consideration one of the six elements of a.
UNIT 30: CONTRACT.  to enforce (to be enforced)  to emphasize  an intention  legal consequences  expressly  to declare  to deduce  general circumstances.
PA Kaplan University1 Unit 6: CONTRACTS. PA Kaplan University2 Overview of Contract Law Sources of Contract Law. – Common Law for all contracts.
Section 6.2 Voidable Contracts and Remedies. Section 6.2 Voidable Contracts and Remedies A contract that seems to be valid can be voided if the agreement.
2011©Cengage Learning. All Rights Reserved.. Contracts and Damages 2011©Cengage Learning. All Rights Reserved.
Chapter 6 Real Estate Contracts 2010©Cengage Learning. All Rights Reserved.
© 2011 South-Western | Cengage Learning GOALS LESSON 2.1 CONTRACT LAW BASICS Name the six essential elements of a legally enforceable contract Identify.
Chapter 13 Introduction to Contracts McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER 8: BREACH OF CONTRACT AND REMEDIES Emond Montgomery Publications 1.
© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 NATURE OF TRADITIONAL AND E-CONTRACTS © 2010 Pearson Education, Inc., publishing as Prentice-Hall.
Ch. 6 How Contracts Come to an End 6-1 Transferring and Ending Contracts 6-1 Transferring and Ending Contracts.
9 - 1 Contracts Contracts Introduction Contracts are the basis of many daily activities. They provide the means for individuals and businesses.
Chapter 9 Contracts. Definition of a Contract Definition A contract is an agreement that is enforceable by a court of law. A contract is a promise or.
Copyright © 2010 South-Western Legal Studies in Business, a part of South-Western Cengage Learning. and the Legal Environment, 10 th edition by Richard.
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Nature of Traditional.
Contracts CLU3M – Understanding Canadian Law.  We will learn the process and limitations on making contracts in Canada. Learning Goals.
Contract Law.
INTRODUCTION TO CONTRACT LAW
English for Lawyers 3 Lecturer: Miljen Matijašević
Chapter 9 Nature of Traditional and E-Contracts
Contract Law.
Contract Performance: Conditions, Breach, and Remedies
LAW ELEMENTS OF A CONTRACT.
The Nature of a Contract
Contract Law.
Unit 16 Contract Law.
Business Law Rustemeyer
Contract Law.
NATURE OF TRADITIONAL AND
Chapter 9 Nature of Traditional and E-Contracts
Presentation transcript:

Contract

Introduction The definition of a contract Contract v. agreement Requirements for a valid contract Void and voidable contracts Unenforceable contracts Breach of contract Damages

Contract A legally binding agreement between two or more parties which the court will enforce Agreement – an exchange of promises; not every agreement is a contract Contract – a legally enforceable agreement – the agreement that generates rights and obligations that may be enforced in the courts

Contract and agreement The law does two things in transforming an agreement into an enforceable contract: 1. It determines whether the contract meets all the requirements of the law 2. The law, and not the contracting parties, has the final say on whether there is a contractual obligation and what the scope of the obligation is

Express and implied terms Express terms: what the parties said or wrote Implied terms: terms that have not been agreed by the parties, but the law makes them part of the contract anyway

Requirements for a valid contract The parties must possess legal capacity to enter contract One party must have made a binding offer, and the other one has to accept it The contract must be supported by consideration The resulting agreement must have been a genuine one Some contracts must be made in a particular form The object of the contract must not be disapproved of by the law

Legal capacity Parties must be competent Natural persons: age of majority (consent), mental capacity Legal persons: properly registered companies

Offer and acceptance One party must have made a binding offer to the other, and the offer must have been accepted Such an offer must be binding; parties must accept legal consequences. In legal terminology, an offer is a statement of willingness by the offeror to enter into a contract if the other party accepts all the terms of the offer

Consideration Every contract must be supported by consideration (the court only enforces a bargain, not a one-sided promise). The doctrine of consideration: any promise not supported by consideration is unenforceable. If the party that makes a promise gets nothing in return, the contract is unenforceable: each party must benefit.

Genuine agreement The resulting agreement must have been a genuine one The contract must reflect the actual exchange of promises, not a false one

Contracts in particular form In certain exceptional cases, the contract must have been made in a particular form Marriage Contracts which must be in writing: a transfer of shares, an assignment of copyright, a contract to pay someone else’s debt... To enforce one of these contracts, a claimant must produce a writing signed by the other party that contains evidence of the contract

The object of the contract The object of a contract must be approved of by the law - f.e. “to take a contract on the rival” is not a contract in law Such an agreement is not legally enforceable

Void contracts Any contract that lacks one of essential requirements It does not give rise to any legal rights or duties It does not exist as far as the law is concerned

Voidable contracts Valid to start with, but may be avoided at the option of one of the parties A contract affected by a flaw (fraud, duress, misrepresentation, undue influence) F.e. The doctrine of duress allows a party to get out of a contract when he was forced to enter into contract by threats from the other party

Unenforceable contracts Contract that is valid in all respects, but cannot be enforced by an action in law because the party wishing to enforce it lacks some kind of evidence (evidence in writing)

Breach of contract Contract typically creates an obligation to do or avoid doing something, or to pay a sum of money Breach of contract is the refusal or failure by a party to a contract to perform an obligation imposed on them under the contract If one party does not do what they have promised to do, they are in breach of contract

Legal remedy The injured party is entitled to a legal remedy

Remedies for breach of contract Equitable remedies: quantum meruit, ‘as much as he deserves’ – for partial performance; Specific performance – an order to make a party perform his obligatons under the contract Injunction – a court order to stop someone breaching a term of the contract

Damages The aim of damages in contract law is to put the claimant in the position he would have been in if the contract had been performed properly Damages are designed to compensate for the loss one has suffered Expectation damages Unliquidated damages – the court decides how much will be awarded in damages Liquidated damages – parties decide in advance

Vocabulary Binding agreement – obvezujući sporazum Contracting parties – ugovorne strane Natural person – fizička osoba Legal person – pravna osoba Valid contract – valjani ugovor Void contract – ništav (ništetan) ugovor Voidable contract – pobojan (poništiv) ugovor Copyright – autorsko pravo Breach of contract – raskid ugovora

Vocabulary revision Fill in the blanks with the most appropriate words from the list below: consideration, sue, obligation, illegal, breach, fraud, mutual, capacity A contract is an agreement that creates a binding _________________ upon the parties. The essentials of a contract are as follows: _________________ agreement, a legal ________________, which need not be financial; parties who have legal ________________ to make a contract; absence of __________ or duress; and a subject matter that is not __________________ or against public policy. In case of a _____________ of contract, the injured party may go to court to __________ for damages, for injunction, or for specific performance if financial compensation would not compensate for the breach.

Answer key A contract is an agreement that creates a binding obligation upon the parties. The essentials of a contract are as follows: mutual agreement, a legal consideration, which need not be financial; parties who have legal capacity to make a contract; absence of fraud or duress; and a subject matter that is not illegal or against public policy. In case of a breach of contract, the injured party may go to court to sue for damages, for injunction, or for specific performance if financial compensation would not compensate for the breach.

Frustration of a contract Repudiation of a contract Arbitration Explain the following terms and find their Croatian equivalents (video vocab): Frustration of a contract Repudiation of a contract Arbitration Consideration Representation / misrepresentation To settle a dispute To award damages

Video Vocab https://www.youtube.com/watch?v=VnChrJuX7xg

Frustration of a contract – prestanak važenja ugovora; nemogućnost izvršenja ugovora Repudiation of a contract – odbacivanje ugovora; nepriznavanje postojanja ugovora Arbitration - arbitraža Consideration – protučinidba (naknada) Representation / misrepresentation – predstavljanje, lažno (krivo) predstavljanje To settle a dispute – riješiti spor To award damages – dodijeliti odštetu

Translate the following: According to the definition, void contracts are those that do not give rise to legal effects they would if they were not void. Voidable contracts give rise to legal effects as valid ones, but if they are set aside within the legally prescribed period of time, it is considered that there was no such legal effects. Void contracts are primarily those that do not conform with the Constitution or social morality, which is a wide formulation that, particularly in the part about morality, covers a lot.

Suggested translation: Prema definiciji ništetni su oni ugovori koji ne proizvode pravne učinke koje bi imali da nisu ništetni. Pobojni su oni ugovori koji proizvode pravne učinke kao da je sve u redu, ali, ako u zakonskom roku budu poništeni, smatra se da tih učinaka nije ni bilo. Ništetni su ugovori prije svega oni koji su protivni Ustavu ili moralu društva, što je dosta široka formulacija pod koju se, posebno u dijelu o moralu, mnogo toga može podvesti.

Thank you for your attention!