Contract Law 1/2/3
Contract Law
Contract Law
Set of flashcards Details
Flashcards | 42 |
---|---|
Language | English |
Category | Law |
Level | University |
Created / Updated | 28.12.2019 / 15.01.2024 |
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How should a contract be established?
- Contracts concluded voluntarily
- Provided Information requirements
- Benefit of both parties/allocation of resources
What is an "efficient breach of contract" in common law?
In common law countries, breach of contract is committed sometimes to increase profit.
What is the CISG?
It is a international sales law that governs contracts for the sale of goods that are between sellers and buyers whose places of business are in different countries that have made the CISG part of their law.
What are the 4 freedom's of the contract law?
- Freedom to conclude the contract
- Freedom to choose the contractual partner
- Freedom of formality
- Freedom to establish the contract‘s content
What is the difference between a bilateral and a unilateral contract?
In a bilateral contract, both parties promise to fulfil their obligations.
In a unilateral contract only one party makes that promise - e.g. "non dislosure agreement"
What is a continuing contract?
It is a call for a periodic performance with a termination date
e.g. leasing contract
What are the general requirements of a contract?
- Offer / acceptance
- Exchange of offer/acceptance
- Offer/acceptance correspond (concerning all essential points); implied promises
- Capacity to act 1.Age (exception minors: necessaries [goods or services needed for minor’s livelihood])
- 2.Capacity to consent
What elements must an offer contain?
- The offer must be communicated to the person to whom it is adressed
- The offer must manifest a willingness to enter the contract.
- The offer must make clear, that acceptance will create the contract.
- Exception: Proposals are non-binding
What are the formal requrenments of a contract?
- If it is written - there must be a signature
- If the object of the contract is immovable a publig register must note the contract/transaction
How must the interpretation of a contract be held?
Every party must act in good faith in excercise of its rights and the performance of its obligations
What are the general terms and conditions (GTC)?
- Pre-formulated provisions used for an indefinite number of contracts that must be agreed upon before in order to conclude a contract.
What are the Aspects of the Performance of the Obligations?
- Place of performance
- Usually in the contract
- if not, at the resident of the creditor at the time of the performance
- Time of performance
- Costs of performance
- Usually in the contract
- Right to subcontract
- Corporation Obligations
- the customer must let the other contractor perform his/hers duty
What are the two types of non-performance?
Default:
If the supplier is unable to deliver the goods on time
Performance impossible:
e.g. if the seller isn't allowed by law to ship the goods in the purchsers's country
What are the two types of defective performance?
Defective Item:
Defective products
Non-observance of other obligations:
Supplier causes damage by providing the service
e.g. deletes data while installing something.
What are the consequences of a material breach of contract?
The Buyer is able to terminate the contract. (claim the refund and the restitution of the price)
What are the consequences of a non-material breach of contract?
The buyer claims compensation for the damages suffered (contract remains in effect)
What is a statute of limitations?
A window of time one has to initiate a claim in court.
What is Property Law?
Property Law governs the ownership of property. (Does not include intellectual property rights)
When does the ownership pass on from the supplier to the customer?
With delivery of the object.
How does the ownership pass in the case of immovable objects?
The aquisition passes with a agreement (sales contract) and a new record in the public deed. e.g. of land -> land register
What is the "Bill of Lading" and how is it used?
- It is a ownership document used as a reciept usually carried by the carrier by delivery.
- The holder of this document is able to sell the product, therefore it is equivalent to the delivery of the goods.
- Goods can be sold or traded during transport
What are the obligation of the seller towards the purchaser in case of a sales contract?
The seller is obligated to transfer
- title
- no third party can have rights unless agreed
- item
- Agreed specifications Implied promises (qualities purchaser may assume in good faith)
What are the obligation of the purchaser towards the seller in case of a sales contract?
The purchaser is obligated to transfer
- payment of the price
- acceptance of the item
- Inspection of the goods after delivery
- defects detected must be notified immediately (Otherwise deemed to accept the product with defects)
When does the Warranty of Quality begin?
- Immediately upon delivery
- In case of defects, has to give notice immediately
What are the remedies in case of defect?
- Reduction of the price
- Rescission (Minderung) from the sales contract
- substitute eprformance (Only possible with consume_products (IPhone, PC))
- refund of damages suffered (only when co-indepted)
- no claim of repair
What is a Contract for Work and Services?
Most of the time in case of a project, a Work and Services contract is concluded in order to produce certain effect of work result. E.g.
- Construction of house
- Development of customized software
- Composition of piece of music
How is the Acceptance of a "Contract for Work and Services" shown?
- As soon as delivered or completed. Here the Buyer must as well inspect the work and confirm the quality stated in the contract.
- The warranty period starts, the buyer must immediately notify the seller in case of defects
- The acceptance after the inspection triggers the payment
What are the remedies in case of defect in the "Contract for Work and Services"?
- reduce of the price
- terminate the agreement
- requirenments of repair
- Here it depends on the product delivered or the work performed
What is the main obligation of the customer in a "Contract for Work and Services"
Payment of th price
What are the possibilities concerning the price in a contract of work and services?
- fixied price
- is agreed in the contract
- no ficed price
- if on time and material basis
- estimated price
- valuw of the work (calculated by a outstanding person)
- Cost ceiling (upper limit of the price)
- Payment terms
- payd in stages (milestones) during the performance of the work
What aspects include cooperation duties from side of the receiver of the work?
- drafting of the specifications
- appointment of a customer project manager
- access (building, building lot, IT environment)
What is a Mandate?
Here the work result is not seeked, however the performing agent must provide his services in a dilligent manner and use reasonalbe skills. We must pay the agent and refund acured expenses.
E.g. You expect from a doctor the required skills
Why do contractors often seek a mandate instead of a contract for work and services?
The contractor tries to avoid the responsibility for the work results they produce. He is nonetheless responsible to work loyally and diligently.
What are the remedies in case of breach of a mandate?
- Refund damage caused
- Reduction of the fee
How is the payment performed in a mandate?
By a fixes price or estimated by time and material used.
How does the termination right apply in a mandate?
May be terminated at any time by either party because it is based on trustworthyness.
Any damages must be recompensated if the mandate is terminated in a unreasonable moment.
What is Non-Disclosure?
- Unilateral/bilateral confidentiality
- Clauses covering any information/only information labelled as “confidential”
What are liquidated damages?
It is a fixed amount to be paid in case of a breach of contract.