English for Contract Law – Final Testpaper

1. TRANSLATION from English into Hungarian

1.1 obliged
legal obligation
breach
appeal court
enforceable contract
offeror
have capacity to contract

1.2

Incorporation of exclusion clauses

The rules of incorporation of exclusion clauses are generally the same as those which apply to the
incorporation of ordinary contractual terms.
Incorporation by signature
Where a document containing contractual terms is signed, then those terms are incorporated into the
contract even if the party signing did not read it or understand it. Therefore, even if a party is unaware of,
or does not understand an exclusion clause, that exclusion clause will form part of the contract if the
document has been signed.
Note, however, that a signed contract can be invalidated in whole or in part if there is a misrepresentation
as to the effect of the exclusion clause:
KEY CASE
L’Estrange v Graucob (1934) 2 KB 394
Concerning: incorporation of terms; signed contract
Facts
Mrs L’Estrange owned a café. She ordered a cigarette machine from the manufacturers which was faulty.
The contract, which she had signed, contained a clause stating that ’any express or implied condition,
statement or warranty, statutory or otherwise not stated herein is hereby excluded’. L’Estrange claimed for
breach of a term implied by the Sale of Goods Act 1893 that the goods were unfit for purpose. She also
claimed that she had not seen the clause and therefore had no knowledge of its contents.
Legal principle
When a document containing contractual terms is signed, then, in the absence of fraud or
misrepresentation, the party signing it is bound and it is wholly immaterial whether he has read the
document or not.

2. TRANSLATION from Hungarian into English

2.1 kártérítésért perel

vélelmet megdönt
szerződésre lép
felülír
szándék
ered vmiből
ésszerű

2.2
1. A felperes az alperes elköteleződésére alapozva (abban bízva) cselekedett.

2. Ahhoz, hogy érvényes és kikényszeríthető legyen, a szerződésnek ellenszolgáltatást kell tartalmaznia.

3. Az ingatlan adásvételi szerződéseknek írásos formát kell ölteniük.

4. Úgy értettem az e-mailből, amit épp most kaptam, hogy a társaságuk lehet, hogy visszavonja a
szerződést.

5. Ha a sértett fél nem óhajtja felbontani a szerződést, dönthet úgy, hogy egy fontos szerződési feltétel
megszegését másodlagos feltétel megszegésének veszi.

3. DEFINITIONS
3.1 Explain the following things in English.
appellant

testator

estate
 clause

place a restriction upon

5.2 Find the words or expressions for the definitions.

someone who is not one of the two main parties involved in a contract or a particular situation
a decision of a judge in an earlier case that other judges must follow if the circumstances of the situation
are the same or similar

something that you suffer as a direct result of the breach of contract

follow the law correctly

legal power over a geographical area or people

4 GAP-FILLING
A) Fill in the blanks with the appropriate forms of the following words:
counsel; contractual; enforceable; former; latter; law; liable; arise
1.. The ___________________ parties have agreed to submit this contract to the jurisdiction of the
Irish
courts.
2. The judge asked __________________ for the defence to explain his point.
3. Conditions and warranties are two types of contractual clauses. Breach of _________ may lead
to the discharge of the contract, whereas breach of _________ may result only in damages.
4. He will be held ____________ for any obligations which may have ___________ before the
repudiation of the contract.
5. Where terms have not been included specifically in the contract, in certain circumstances the
missing terms are inferred by _______________ .
6. A contract needs consideration to be valid and ________________ .

B) Fill in the blanks with the appropriate prepositions:

1. A precedent from 1908 is binding _____________ the court in this type of situation.
2. You should not have entered _____________ this loan agreement unless you were sure you could
make the repayments.
3. I work _____________ an international law firm in Hong Kong.
4. I gave him my car in exchange _____________ his van.
5. _____________ my solicitor's advice I decided not to sue.
6. 'You are _____________ a legal obligation to carry out your obligations.