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Пилявец, Насонова Ч.1. Англ.яз.для студ 4-6 курсов МП з.о.doc
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2.1.2 Read and translate the text.

Contract law is a central part of legal systems all over the world. It is the means by which exchange relations are supported. Many people think that a contract is only legally enforceable if it is written and signed by the parties to the contract. This is a mistaken belief. Even simple transactions such as the purchase of a bus ticket or a packet of frozen peas from a supermarket are enforceable contracts.

A contract is simply an agreement which can be enforced through the courts. Agreement between the parties is an essential element of a contract. In order to be binding in law the agreement must include an offer and an acceptance of the offer. The terms of the agreement offered and accepted by the parties must be certain and clear – that is, the contractors must know what they are agreeing to. Another important element of an enforceable contract is the intention of the parties to be legally bound (there is no contract if, for example, the parties were just joking when they made the agreement).

Most legal systems also consider the capacity of the contractors – that is, whether they were legally entitled to contract. There are some special rules if one of the contractors is a person under the age of 18, or insane; rules when a contractor made a mistake or was pressured or tricked into making an agreement, and rules for dealing with illegal contracts. For example, under English law a contractor cannot enforce an agreement against another party if the agreement was to commit a crime.

When a court is deciding whether a contract has been made, it must consider all these elements.

A failure to comply with the terms of contract is called a breach of contract. If one of the parties fails to perform his or her obligations, the other party may apply to a court for a legal remedy. If the court decides that there has been a breach of contract, it must then judge how the party in breach must compensate the other party.

The usual award for the loss because of the breach is monetary compensation, or damages.

Instead of damages, the court can force the other contractor to carry out the contract. This is called specific performance.

A plaintiff may also ask the court to award an injunction against the defendant, that is, to order the defendant not to do something which would be in breach of contract.

Contracts are especially important in international business, where the parties try to specify all the parts of their agreement in a clear written contract so that to avoid differences of law and custom between their countries.

2.1.3 Read the text again to answer the following questions.

1) Why is contract law a central part of legal systems all over the world?

2) Is an enforceable contract always a written contract?

3) What is a contract?

4) What are the elements of an enforceable contract?

5) What does the capacity of a contractor mean?

6) What is called a breach of contract?

7) What legal remedies can be provided by a court to compensate the injured party?

8) What is called damages (specific performance, injunction)?

9) Why are contracts especially important in international business?