Contract Law Contract law A body of rules

Contract Law

Contract law �A body of rules which regulate the formation of contracts so that contracts properly formed will be binding on the parties involved, and the courts will be able to enforce them.

Contract � An agreement with specific terms between two or more parties in which there is a promise to do something in return for a certain benefit. � Remember which are essential requirements for a valid contract! � Term – odredba ugovora

Match the terms denoting essential preconditions for a binding common law contract provided in the box with their definitions. legal capacity acceptance � � � offer compensation consideration intention to be legally bound _____________ = power provided under law to a natural person or a juridical person to enter into binding contracts _____________ = something of value which must be given for a contract to be enforceable _____________ = statement given by the person receiving the offer by which he or she accepts the offer subject to contract (a precondition for a contract to be legally binding) _____________ = an expression of willingness to contract on specified terms, made with the intention that it is to be binding once accepted by the person to whom it is addressed _____________ = a proposal to enter into an agreement, usually accompanied by an expected acceptance _____________ = pecuniary remedy awarded to an individual who has sustained an injury in order to replace the loss caused by the injury

� � � legal capacity = power provided under law to a natural person or a juridical person to enter into binding contracts consideration = something of value which must be given for a contract to be enforceable acceptance = statement given by the person receiving the offer by which he or she accepts the offer subject to contract (a precondition for a contract to be legally binding) Intention to be legally bound = an expression of willingness to contract on specified terms, made with the intention that it is to be binding once accepted by the person to whom it is addressed offer = a proposal to enter into an agreement, usually accompanied by an expected acceptance compensation = pecuniary remedy awarded to an individual who has sustained an injury in order to replace the loss caused by the injury

Translate the following sentences into Croatian: � For an agreement to become an enforceable contract one of the parties (offeror) to the contract must have made an offer and the other party (offeree) must have accepted it. � Besides offer, acceptance, consideration and an intention to create legal relations, the fifth essential precodnition for the creation of every contract is the legal capacity of all parties to enter into a contract.

Structure of a contract � � � � � Contracting party – ugovorna stranka Condition – uvjet Warranty/guarantee – manje važna ugovorna obveza, jamstvo Term of contract – trajanje ugovora Termination of contract – raskid ugovora Confidentiality – povjerljivost Indemnity – obeštećenje, nadoknada štete Force majeure – viša sila Assignment – ustupanje Applicable law – mjerodavno pravo

Read about the structure of a contract and complete the following statements about contract law. � Conditions of a contract are _____________________________________. � Warranties are not essential to a contract and usually refer to __________________________. � Some of the most common clauses included in almost every contract are: ____________________________________________________ ______________________.

� Conditions of a contract are indispensable to the purpose of the contract (e. g. price and subject matter) and must be fulfilled. � Warranties are not essential to a contract and usually refer to the quality, fitness, performance of the product. � Some of the most common clauses included in almost every contract are: Parties, Charges, Term of contract, Termination provisions, Confidentiality, warranty/guaranty, indemnity, Force Majeure, Assignment, Entire agreement/Integration/Merger, Applicable law/Governing law.

Defective contracts � 1. ___________ contract is initially valid but can be annulled if the parties request it. � 2. ___________ contract contains all the necessary elements but has a certain technical defect because of which it cannot be enforced. � 3. ___________ contact lacks some of the essential elements and is not valid from the start.

� 1. Voidable contract is initially valid but can be annulled if the parties request it. � 2. Unenforceable contract contains all the necessary elements but has a certain technical defect because of which it cannot be enforced. � 3. Void contact lacks some of the essential elements and is not valid from the start.

Read the paragraph about remedies for breach of contract and complete the definitions: � � � � 1. __________ is the most frequent remedy for breach of contract by which the injured party is financially compensated for the loss. 2. If the terms of a contract are carried out entirely the contract is said to be ended by ___________. 3. _______________ is used as a remedy when there is a need to cancel the contract. 4. If the parties agree to release each other from their contractual obligations the contract is said to be ended by ____________. 5. __________ of the contract happens when one of the parties refuses to perform or performs defectively. 6. __________ means that the contract is ended because some events make its performance impossible. 7. ___________ refers to the court order to the breaching party to perform the obligation. 8. ___________ refers to the court order to the breaching party not to do something.

� � � � 1. Damages is the most frequent remedy for breach of contract by which the injured party is financially compensated for the loss. 2. If the terms of a contract are carried out entirely the contract is said to be ended by performance. 3. Contract rescission is used as a remedy when there is a need to cancel the contract. 4. If the parties agree to release each other from their contractual obligations the contract is said to be ended by agreement. 5. Breach of contract of the contract happens when one of the parties refuses to perform or performs defectively. 6. Frustration means that the contract is ended because some events make its performance impossible. 7. Specific performance refers to the court order to the breaching party to perform the obligation. 8. Injunction refers to the court order to the breaching party not to do something.

Find the Croatian equivalents for the following collocations: � � � � to enter into a contract = ______________________ to enforce a contract = _______________________ to breach a contract = _______________________ to rescind a contract = _______________________ to declare a contract invalid = ____________________ to discharge a contract = ______________________ to annul a contract = ________________________ to terminate a contract = ______________________

� to enter into a contract = sklopiti ugovor � to enforce a contract = prisilno izvršiti ugovor � to breach a contract = (pre)kršiti ugovor � to rescind a contract = poništiti / raskinuti ugovor � to declare a contract invalid = proglasiti ugovor nevažećim � to discharge a contract = osloboditi ugovorne obveze � to annul a contract = poništiti ugovor � to terminate a contract = raskinuti ugovor

Read the breach of contract letter (pp. 161 -162) and put the elements A-J in the right order: 1 H 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10 H D B G F E I J C A

A Sales of Goods Contract � Read the text (pp. 164 -65). � Find the expressions, italicised in the text, which mean the following: � will be tried � to find a solution for the disagreement � obey the contract provisions � make sure that the rights are observed � give information in advance � any damage or loss will be the liability of � guarantee

� will be tried = will be heard � to find a solution for the disagreement = to resolve the dispute � obey the contract provisions = comply with these provisions � make sure that the rights are observed = to enforce the rights � give information in advance = give notice � any damage or loss will be the liability of = shall be incurred � guarantee = warrant

Thank you for your attention!