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Contract Law
Contractual formation
OFFER
+
ACCEPTANCE
+
CONSIDERATION
= ENFORCEABLE
CONTRACT
*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
legally bound
COMMERCIAL
AGREEMENTS
-presumed to be
contracts
CONTRACT
FAMILY AND SOCIAL
AGREEMENTS
-has to be proved that
it was intended to be
legally bound
Setting aside the contract
Three different ways in which contracts can
be set aside:
1.
VOID
2.
VOIDABLE
(a contract never came into existance)
(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 didn’t sign a contract)
MISREPRESENTATION
B) The restricted capacity of either natural or
artificial person to either enforce contracts or have
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
INFLUENCE
D) One person taking advantage of a position of
another person (eg. parent-child; solicitor-client).
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
Shareholder”s 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, Parties, Confidentiality, Warranties, Assignment, Applicable Law

_____ – clause in which the names and addresses of all the contracting parties
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
MONEY
DAMAGES
ORDER OF
SPECIFIC
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 set………………aside
to possess………………
Translation practice
Translate the following sentences into English:
1.
Ako ugovor ne ispunjava osnovne uvjete bez
pravnog je učinka i ne može dovesti do stjecanja
zakonskih prava i dužnosti.
2.
Ugovor je poništiv i može se anulirati na zahtjev
jedne od strana u slučaju prevare, lažnog
prikazivanja, protuzakonitog utjecaja ili prinude.