Contract Law

Contractual formation

OFFER
+
ACCEPTANCE = ENFORCEABLE
+ CONTRACT
CONSIDERATION

*enforceable contract = legally valid and binding (the

courts can force the parties to abide by it )
 Different forms of a contract

CONTRACT

EXPRESS IMPLIED

3 elements are
implied/presumed

written oral

3 essential elements are present

 Consideration
Common law jurisdictions

both parties to a contract must bring

something to the bargain

money anything of value

to the parties

Eg. I Eg. II
Party A a farm (consid.) Party C clerical work(consid.)
Party B a million dollars Party D food and shelter
(consid.) (consid.)
*Civil law jurisdictions no consideration (a promise does not need
consideration to be enforceable)
 Intention to be legally bound

agreement
+
intention to be CONTRACT
legally bound

COMMERCIAL FAMILY AND SOCIAL

AGREEMENTS AGREEMENTS

-presumed to be -has to be proved that

contracts it was intended to be

legally bound
 Setting aside the contract
Three different ways in which contracts can
be set aside:

1. VOID (a contract never came into existance)

2. VOIDABLE (one or both parties may declare a

contract ineffective at their wish)

3. UNENFORCEABLE (lacks some particular type

of evidence necessary for
the enforcement eg. lapse
of time, no signature, not in
writing)
 VOIDABLE CONTRACTS
Match the terms with their definitions.
MISTAKE A) A threat of harm to compel a person to do sth
against his or her will or judgement (eg. threatening
to kill the other party if he didnt sign a contract)
MISREPRE- B) The restricted capacity of either natural or
artificial person to either enforce contracts or have
SENTATION them enforced against them (eg. small children;
mentally incapacitated people).
DURESS C) A false statement of fact made by one party to
another party and has the effect of inducing these
party into the contract(eg.false statement of
promises)
UNDUE D) One person taking advantage of a position of
another person (eg. parent-child; solicitor-client).
INFLUENCE
INCAPACITY E) An incorrect understanding by one or more
parties to a contract.
Types of legal contracts
Sale(s) agreement
Loan agreement
Lease agreement
Contract of employment
Shareholders agreement
Manufacturing licence agreement
Franchise agreement
Shipping contract
Structure of a Contract express terms
Match the clauses with their definitions.
Indemnity, Dispute Resolution, Payment Provisions, Force Majeure, Term of Contract,
Termination Provisions,
_____ clause Parties,
in which Confidentiality,
the names Warranties,
and addresses of all Assignment, Applicable
the contracting parties Law
are
stated
_____ clause setting out the exact price to be paid for the goods or services

provided and the date for payment to be made

_____ clause stating the length of the contract and the options to continue it

_____ clause stating the circumstances under which the parties can terminate

the contract
_____ clause identifying the information which should be treated as private and

be protected and the circumstances in which it can be used or disclosed.

_____ clause outlining procedure to be followed if the parties have a dispute

_____ clause referring to provision of certain warranties by the party providing

goods concerning the delivery of the goods or services

_____ clauses expressing an obligation to compensate the indemnified party by
making a money payment for some defined loss or damage
_____ clause designed to protect against failures to perform contractual

obligation where and when the performance of the contract is impossible through an
unavoidable event beyond the party's control, such as a natural disaster or civil
unrest.
_____ clause prohibition or permitting transferring the contractual rights and

responsibilities to another party

_____ clause indicating which law governs the contract
Remedies for breach of contract

AWARD OF ORDER OF
MONEY SPECIFIC
DAMAGES PERFORMANCES
 Essential expressions
to form/enter into/
breach/enforce/set
aside/terminate
a contract
a breach of contract
consideration
offer and acceptance
an implied/express/
legally binding contract
to set a contract aside
confidentiality = diskrecija
Warranty = jamstvo
Force Majeure = visa sila
Assignment = ustupanje, prijenos
a void/voidable/
unenforceable contract
Mistake = lazno prikazivanje
cinjenica
misrepresentation = zabluda
duress = prisila
undue influence =
protuzakoniti utjecaj
incapacity = sposobnost
an order of specific
performances = izvrsenje
ugovora u naturi
indemnity = obestecenje
Vocabulary practice I Word formation
Fill in the blanks by using the appropriate words from
the text:

VERB NOUN ADJECTIVE

to enforce

avoidance
_______
performance
 Vocabulary practice II - Collocations
Choose one of the listed nouns for each of the following
verbs. Use the text.

a binding offer; requirements; legal capacity; a contract; a

contract; requirements

to comply with to make . to fulfil

.
to enter into to setaside to possess
Translation practice
Translate the following sentences into English:

1. Ako ugovor ne ispunjava osnovne uvjete bez

pravnog je uinka i ne moe dovesti do stjecanja
zakonskih prava i dunosti.

2. Ugovor je ponitiv i moe se anulirati na zahtjev

jedne od strana u sluaju prevare, lanog
prikazivanja, protuzakonitog utjecaja ili prinude.