Writing

Describe in 200 words which brands you are loyal. Explain your reasons.

SECTION 2:

General notes on contracts

Before you read

Discuss these questions:

1. What do know about contracts?

2. Can we define a contract as an exchange of promises?

3. What types of contracts are used in every day’s life?

Key vocabulary:

to seek a remedy, breach of contract, contracting parties, inducement, tangible property, to incur legal duties, consideration, subject matter, to seek a remedy, unilateral / bilateral, valid, voidable, void, express/ implied/ quasi contracts, formal/ simple contracts, executed/ executory contracts.

Read and translate the text:

What is a Contract

A contract is an agreement, which is enforced by law. This agreement normally results from an exchange of promises. The contract creates legal obligations for both parties. Thus, there is a relationships between the rights ( what one is entitled to) and the duties ( what one must do ) of the contracting parties. A contract gives each individual a legal duty to the other parties, but each individual also has a right to seek a remedy for breach of contract ( failure of the other party to fulfill the legal duty). In brief, to be enforceable a contract must have:

1/ competent parties;

2/ legal subject matter;

3/ legal consideration;

4/ mutuality of agreement;

5/ mutuality of obligations.

The absence of any of these elements may render a contract unenforceable.

Competent Parties. In order to demonstrate the competence necessary to render a contract enforceable, all parties to a contract must have the ability to understand and agree to the terms of the contract.

Subject matter. The subject matter of a contract must be legal, e.g. the sale or supply of goods, providing different services and so on. Thus, one cannot form a legal contract to have a third party killed.

Legal Consideration. Consideration is the inducement to enter a contract. Although the consideration for entering a contract is often reduced to an amount of money, it can also be a right, tangible property, benefit, or some other interest.

Mutuality of Agreement. Mutuality of agreement is a meeting of the minds of all parties to a contract. It means that the parties understand and share the common purpose that certain rights or benefits will be transferred and a mutual obligation incurred.

Mutuality of Obligation. Mutuality of Obligation is especially important when it comes to a question of action for breach of contract, for unless both parties to a contract are bound, neither is bound. The parties must incur legal duties before a contract is enforceable.

Contracts can be classified as unilateral or bilateral, according to whether one or both parties make a promise. Contracts also can be classified according to enforceability as valid, voidable and void or unenforceability. It’s possible to classify contracts by methods of creation, formality and extent of performance.