EFB - Lesson 6

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Englisch fr

BuchalterLesson 6

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Contract Law (Vertrag Gesetzt)Contract - Elements of a Contract

Today we will look at process of bargaining ornegotiating to achieve a business deal..

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Parties - the legal entities involved

Offer- business proposal

Further information -

additional informationconcerning the offer

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Counter-offer- modification of the originalbusiness proposal

Consideration - something of value given inexchange for something else of value

Acceptance - agreeing to the terms

of the offer thereby finalizing the deal

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Contract law applies to business deals of allsizes from ordering a pizza to buying a

commercial property.

Imagine you are a legal party in one of thetransactions on the next slide =======>

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Imagine you are buying a

pizza?Imagine you are purchasing apiece of commercial property.

What are the elements?

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A contract must be entered for"legelpurpose" e.g. a contract to produce and

distribute illegal drugs or firearms is not abinding contract.

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There must be a "mutuality of obligation" soboth parties must understand and assent to

what is in the contract.

The offer and acceptance of the terms must beclear and definite and all essential terms mustbe agreed upon by both parties.

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Treaty of Waitangi - this was a contract between English and Maori to shareNew Zealand. There were versions both in English and the Maori language. bythe end of 1840 500 Maoris had signed the Maori version and 40 had signedthe British version.

English version - gave the English

sovereignty (Oberhoheit)

Maori version - gave the English

governorship (Gouverneursamt)

The courts concluded that English

would hold sovereignty and would

protect Maori governorship.

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An offeris an indication by one person to another of theirwillingness to enter into a contract with that person oncertain terms.

An "invitation to treat" is merely an invitation for anotherparty to enter into negotiations.

For example, if you have a retail shop, opening your shop

is an invitation for people to enter and consider your goods.Accepting that invitation to treat does not form a legallybinding contract.

On the other hand, once an offer is accepted a contract is

formed.

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Acceptance is the offeree's voluntary, communicated

agreement or assent to the terms and conditions of the

offer.

Assent is some act or promise of agreement. A simple

example of an assent might be your friend saying, "I agree

to buy your black leather jacket for 1,000."

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The contract must be entered by (a)competent party(ies).

A person must be of legal age

or insane

and not drunk

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A contract's subject mattermust be certain.

e.g. Contract to buy 1,000 coffee cups from OTTO

The term "1,000 coffee cups"', quantity is certain but notitem. It is not expressly implied what type of coffee cupsthe purchaser wishes to purchase.

And if the purchaser tries to sue OTTO for not providing aspecific type of coffee cup the courts can void thecontract on this basis.

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However if the purchaser tries to sue OTTO for notproviding a specific type of coffee cup that both OTTO andthe purchaser were in negotiation over and there were

specific facts -

e.g. the purchaser requires the cups for wedding catering,the courts can ascertain that there are certain impliedterms -

e.g. that the parties were negotiating only for OTTO'swedding range and so validate the contract on this basis.

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EFB - Lesson 6