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|UNIT 8. CONTRACT LAW |
1. What is the difference between Employment Law and Contract Law?
2. Lawyers are usually involved at the formation stage of a contract, which includes advising, drafting and negotiating. How could you describe all steps of the formation of a contract?
3. Name all clauses of a contract in your jurisdiction.
Part I. Nature of contracts. Importance of Contract Law
Contract law is a body of rules governing the formation, performance, and enforcement of contracts. Its major purpose is to protect the reasonable expectations of individuals, businesses, and governments that contracts will be binding on and enforceable by the parties. Because contracts are enforceable, private parties can make personal and business plans of immense variety, confident of receiving the bargained-for exchange or a court-ordered equivalent (usually a money payment called "damages"). The large-scale, long-term business planning necessary for a modern industrial society would be difficult to achieve without the legal enforceability of contracts.
Common law contract principles appear throughout the law governing employment, labor-management relations, partnerships, corporations, antitrust and merger problems, secured transactions such as mortgages, insurance, and the landlord-tenant relationship. The law of contracts has been adapted to serve special needs. For example, we have a special body of contract law governing the sale of goods. An even more specialized body of contract law applies to commercial paper: the checks, notes, drafts, and certificates of deposit used in financial transactions. Even the law of bankruptcy requires attention to contract principles, since the courts must decide which of the troubled debtor’s contracts are to be enforced and which are not. A study of the concepts, principles, and technical vocabulary of contract law will aid immensely in understanding most other business law.
A contract may be defined simply as a promise or set of promises that the court will enforce. A contract may also be defined as a legally enforceable agreement. This agreement often consists of an exchange of promises between two persons, called “parties”, who hope to strike a bargain that is acceptable to each party.
Since promises are a vital part of contracting, it is helpful to consider the legal meaning of promise and its contractual function. A promise is “a manifestation of intention to act or to refrain from acting in a specified way, so made as to justify a promise in understanding that a commitment has been made”. The party who makes a promise is called the promisor. The one to whom the promise is made is called the promisee. The “commitment” is the promisor’s pledge or assurance that he or she will perform in the way specified, and it ordinarily is made to induce the promisee into a contract. Because the ability to rely on commitments is essential for planning and carrying out business activities, the law protects promisees’ expectations of performance by enforcing contractual and certain other kinds of promises.
A promise may be communicated by language or by nonverbal conduct. When communicating in language, a promisor need not to use the word “promise”. Expressions such as “I will pay” and “I’ll give you 10$ for it” are promises to pay. Often, promises are inferred from nonverbal conduct. For example, at an auction, a promise to pay may be inferred from the bidder’s act of raising a hand or a card. This is so regardless of any secret intention of the bidder not to pay. Contracting parties such as a seller at an auction usually can rely on external (objective) manifestations of intention and are not bound by internal (subjective) intentions that contradict the outward manifestations.
The usual goal of contracting parties is an exchange of values: money for goods or for real estate, goods for services, and so on. There may be a period of negotiation or bargaining during which the parties try to establish the price and other terms. The resulting contract will call for one party to render a performance (or to make a promise to perform) in exchange for the other party’s return performance or promise.
A contract for an exchange of values usually must meet the following requirements:
1. Agreement. Agreement is defined as a manifestation of mutual assent ordinarily arrived at by a process of offer and acceptance (which may or may not involve bargaining over terms). Ann asks Ben to paint her house for 2 000$. Ann is the offeror (the person making an offer) and Ben is the offeree (the person receiving the offer). A contract forms, or “arises”, when the offeree (Ben) indicates agreement to, or “accepts”, the offer.
2. Consideration. The promises must be supported by consideration. Ann’s promise to pay money is consideration for Ben’s promise to paint her house. His promise to paint the house is consideration for her promise to pay money. (Thus, usually, each contracting party is both a promisor and a promisee.)
3. Capacity. The parties involved must have capacity (mental or legal ability) to contract.
4. Lawful Purpose (Legal Object). The agreement must serve a purpose that is permitted by law. For example, an agreement to buy heroin for recreational use or for resale would not be a contract because the agreement has an illegal purpose.
I. Match the words to form collocations as they appear in Reading 1. Make your own sentences using these collocations:
1. reasonable a) assent
2. confident of b) expectations
3. bargained-for c) a performance
4. court-ordered d) receiving
5. labor-management e) of values
6. secured f) exchange
7. contract g) conduct
8. enforceable h) equivalent
9. strike i) pledge
10. justify j) transactions
11. promisor’s k) a promise
12. nonverbal l) a bargain
13. exchange m) agreement
14. render n) principles
15. mutual o) relations
II. Match the terms to their definitions:
III. Give English equivalents for the following word combinations using active vocabulary:
Заключить сделку; договорные обязательства; выполнять обязательства; связывать себя обязательствами; должник по договору; кредитор по договору; делать выводы; обоюдное согласие; встречное удовлетворение; крупномасштабное долгосрочное планирование; имеющее обязательную силу; положение договора; без возможности принудительного осуществления по закону; оборотные кредитно-денежные документы.
IV. Fill in the gaps with prepositions:
V. Answer the following questions:
VI. Render the texts:
|D'Angelo Law Library New Acquisitions List July 2005 Law: Law in General, Comparative and Uniform Law, Jurisprudence||D'Angelo Law Library New Acquisitions List February 2002 Law: Law in General, Comparative and Uniform Law, Jurisprudence|
|D'Angelo Law Library New Acquisitions List July 2002 Law: Law in General, Comparative and Uniform Law, Jurisprudence||New Acquisitions List July 2004 Law: Law in General, Comparative and Uniform Law, Jurisprudence|
|New Acquisitions List June 2005 Law: Law in General, Comparative and Uniform Law, Jurisprudence||Intensity, flux, energy density, heating rate, extinction, emission, scattering, thermodynamic equilibrium (lte), blackbody radiation, Kirchhoff’s law, Wien’s law, Stefan-Boltzmann law, Rayleigh-Jeans law, non-thermodynamic equilibrium (Nlte)|
|New Acquisitions List May 2005 Law: Law in General, Comparative and Uniform Law, Jurisprudence||Prepared by Susan S. Grover, Eric Chason & J. R. Zepkin of William & Mary Law School, Emmeline P. Reeves of University of Richmond Law School, Robert W. Wooldridge, Jr of George Mason University Law School & C. Scott Pryor of Regent University Law School|
|Law of Contract with Robert Mackay Course Notes||Employment Law In Virginia|