Englisch fr Buchalter

Lesson 6

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

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

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

Parties - the legal entities involved Offer - business proposal Further information additional information concerning the offer

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

Counter-offer - modification of the original business proposal Consideration - something of value given in exchange for something else of value Acceptance - agreeing to the terms of the offer thereby finalizing the deal

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

Contract law applies to business deals of all sizes from ordering a pizza to buying a commercial property. Imagine you are a legal party in one of the transactions on the next slide =======>

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

Imagine you are buying a pizza? Imagine you are purchasing a piece of commercial property.
What are the elements?

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

A contract must be entered for "legel purpose" e.g. a contract to produce and distribute illegal drugs or firearms is not a binding contract.

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

There must be a "mutuality of obligation" so both parties must understand and assent to what is in the contract. The offer and acceptance of the terms must be clear and definite and all essential terms must be agreed upon by both parties.

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract
Treaty of Waitangi - this was a contract between English and Maori to share New Zealand. There were versions both in English and the Maori language. by the end of 1840 500 Maoris had signed the Maori version and 40 had signed the 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.

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

An offer is an indication by one person to another of their willingness to enter into a contract with that person on certain terms. An "invitation to treat" is merely an invitation for another party 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 legally binding contract. On the other hand, once an offer is accepted a contract is formed.

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

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."

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

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

A person must be of legal age

or insane

and not drunk

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

A contract's subject matter must be certain. e.g. Contract to buy 1,000 coffee cups from OTTO The term "1,000 coffee cups"', quantity is certain but not item. It is not expressly implied what type of coffee cups the purchaser wishes to purchase. And if the purchaser tries to sue OTTO for not providing a specific type of coffee cup the courts can void the contract on this basis.

Contract Law (Vertrag Gesetzt)

Contract - Elements of a Contract

However if the purchaser tries to sue OTTO for not providing a specific type of coffee cup that both OTTO and the 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 implied terms e.g. that the parties were negotiating only for OTTO's wedding range and so validate the contract on this basis.