Contract law. Учебное пособие

Министерство образования и науки Российской Федерации

Новосибирский государственный университет экономики и управления «НИНХ»

Кафедра иностранных языков

О. В. Подоксенова

CONTRACT LAW

Учебное пособие

Новосибирск

2016

CONTENTS

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Preface

Данное пособие предназначено для студентов 1–2 курсов юридического факультета. В пособии подробно рассматривается основной раздел коммерческого права (заключение и исполнение контракта). Цель пособия — обучение навыкам чтения и перевода оригинальной литературы по специальности, ознакомление с юридической терминологией, систематизация и расширение словарного запаса по данной специальности.

Пособие включает в себя шесть основных разделов:

•«Contract law» (объяснение основных понятий «бизнесправо» и «контракт»);

•«Types of contracts» (информация об основной классификации контрактов и их особенностях);

•«Methods and terms of payment» (изучение способов и условий оплаты);

•«Requirements for a contract» (необходимые требования при заключении и исполнении контракта);

•«Methods of contract discharge» (способы прекращения обязательств по контракту);

•«Types of remedies» (компенсация и возмещение ущерба). Данное пособие содержит текстовой материал, после кото-

рого следует краткий поурочный словарь, включающий активнуюлексику.Впособиевключеныразличныевидытренировочных упражнений, направленных на проверку понимания прочитанного материала и активизацию лексического минимума, представленного в тексте, а также упражнения на перевод с русского языка на английский, опирающиеся на лексическую и тематическую базу. Каждый раздел содержит задачи для самостоятельного решения и обсуждения на занятии, направленные на формирование навыков работы с литературой по специальности и контроль правильного понимания текста, а также формирования коммуникативных навыков. В конце методического пособия представлены примеры контрактов.

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I. CONTRACT LAW

Read and translate the text

Contract law controls most agreements between parties, whether oral or written, that involve goods, services, money, employment contracts and real estate deals.

It deals with rules regulating essential conditions of the subject of the contract, the responsibilities of the parties, the quantity and quality of goods and services, the cost and the insurance of goods, receipts and payments which are made.

A contract is an agreement between two or more parties to perform a service, provide a product or commit to an act, and is enforceable by law. There are several types of contracts, and each has specific terms and conditions.

What is a contract?

There are six elements that make a contract valid:

•an offeror;

•an offeree;

•consideration;

•capacity of all parties;

•mutuality;

•legal object.

To simplify this, the offeror is the party that makes the proposal or offer to another person. The offeree accepts the offer to enter into the contract. Consideration is something of value given up by both parties as part of the agreement, like money or performance of promises.

Both parties must also have capacity, meaning each party to the contract must be 18 years of age or older, free of mental illness, intoxication or addiction. Mutuality means both parties agree to the terms of the contract of their own free will and without duress.And, of course, legal object of the contract is that terms must be legal and do not break any laws, policies or rules.

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It is important to know that when there is a breach of contract, the courts have a right to require specific performance by the breaching party. This means the breaching party will be legally forced to keep up his end of the promises in the contract exactly as stated in the original agreement. This is a way to make a non-breaching party whole again without forcing compensation.

In order for a contract to be enforceable, it must contain:

1)an offer that specifically details exactly what will be pro-

vided;

2)acceptance, which is the agreement by the other party to the offer presented;

3)consideration, money or something of interest being exchanged between the parties;

4)capacity of the parties in terms of age and mental ability;

5)the intent of both parties to carry out their promise;

6)legally enforceable terms and conditions, also called object of the contract.

In other words, a contract is enforceable when both parties agree to something, back the promise up with money or something of value, both are in sound mind and intend to carry out their promise and what they promise to do is within the law.

Most commonly, a contract is written and signed by the parties. However, there are several other types of contracts that are considered enforceable. There are even some that are not considered enforceable and serve only as a way for a court to determine the obligation on the part of either party.

ELEMENTS OFACONTRACT

Read and translate the text

Let’s take a closer look at the requirements of a valid offer.

A formal offer is the main, and first, element in a contract. It should contain all of the key factors of the contract.An offer can be communicated in any way. I can write out my offer, I can verbally

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speak my offer, we can meet in person or speak on the telephone. I can even email or text my offer.

There are countless ways to communicate an offer, but there are certain requirements of a legally valid offer:

1)it must indicate a clear intent to form a contract;

2)it must contain a definite proposal that is certain in its terms;

3)it must be communicated to the other party.

If any of these elements is missing, there is no offer and no resulting contract. For example, let’s say I make a formal offer to you. I ring your doorbell and tell you that I’m willing to wash all of the windows in your house next Saturday for $25. I’ve expressed my clear intent to form a contract with you. I’ve sufficiently defined the terms of my offer, since I said I’ll do the work on Saturday, and I’ve told you how much I charge. I’ve also communicated the offer to you in such a manner that you can now accept or reject my offer.

Contract party roles and relationship

Apartytoacontractisonewhoholdstheobligationsandreceives the benefits of a legally binding agreement. When two parties enter into an agreement, there are two distinct roles each play: the promisor and the promisee. The promisor (offeror) is the party that makes the promise, while the promisee (offeree) is on the receiving end of the promise.

Third-Party Beneficiaries

Sometimes a contract benefits others who are not party to the agreement. These third-party beneficiaries receive benefits of a contract, while not owing any obligation. There are two types of thirdparty beneficiaries: intentional beneficiaries and incidental beneficiaries.

Aperson whose benefit is intended is called an intended beneficiary and receives benefits from a contract and is generally stated or named within the contract.

Let’s re-visit Cathy Smith and her family reunion. Cathy wants to surprise her favorite aunt and matriarch of the family, Mrs. Jones,

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with a helicopter ride to the event. Cathy contacts Flying High Helicopter Tours to arrange for transportation for Mr. Jones, from her local airport to the park where the event is being held. In the contract, Cathy and Flying High decide on a price, a time and the name of the passenger, Mrs. Jones. He is the intended beneficiary of a contractual agreement between Cathy and Flying High. Even though Mr. Jones is not a party to the contract, he receives the benefit of the helicopter ride. He possesses the right to sue for breach of contract or non-performance should Flying High forget to pick his up.

Vocabulary

transaction — сделка, операция agreement — соглашение

mutual assent — взаимное согласие offer — оферта (предложение)

offerer — лицо, делающие предложение (исполнитель) offeree — лицо, которому делают предложение (заказчик) legally competent — юридически компетентный

break the law — нарушить закон

breach of contract — расторжение контракта insurance — страхование

subject of contract — предмет договора accept — соглашаться, принимать duty — обязанность

right — право

responsibility — ответственность injured party — пострадавшая сторона determine — определять

capacity — способность acceptance — принятие third party — третья сторона

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Exercises

1.Answer the questions: What is business law?

What rules of business does business law regulate? What is the meaning of contract?

What are the main parties of a contract?

What must both parties know before making a contract?

2.Answer and discuss the problems:

а) Mr. Smith wants his car to repair. A mechanic examines his car and offers to do the job for $500 during the next week. Mr. Smith agrees, gives him a down payment of $100 and gets a receipt. Is it a contract? Who are an offerer and an offeree?

b)Alex was swimming in the sea, when suddenly heard a frightened woman: «Please save my son! I’ll give anything you want, if you save him!» Alex rescued her son and asked her for $5 000. Was it a contract? Can this woman change her offer?

3.Match the following.

a)agreement;

b)mutual assent;

c)offerer;

d)offeree;

e)business transaction;

f)contract;

g)down payment;

h)legally competent;

i)receipt.

1)operation which is connected with the delivery of goods and services;

2)acceptance of proposals by two or more parties;

3)voluntary acceptance to make a contract;

4)one who makes an offer;

5)onewhohasknowledgeoflawandcapacitytomakeacontract;

6)sumofmoneygivenbyoneofthepartyforthefuturedelivery;

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7)party to whom the offer is made;

8)agreement to exchange goods for goods;

9)a written form of payment.

4. Make short sentences with the following phrases:

a)to be concerned with essential conditions,

b)subject of the contract,

c)to discuss a compensation,

d)to make a down payment,

e)to be enforceable by law,

f)to consume goods and services,

g)to accept an offer,

h)to indicate,

i)to be responsible for.

5. Translate from Russian into English:

1)Бизнес-право регулирует заключение и выполнение деловых операций, правила составления контрактов, права и обязанности сторон.

2)Контракт — это взаимное согласие двух и более сторон об обмене товарами или услугами.

3)Сторона, делающая предложение, является исполнителем, сторона, принимающая предложение, — потребителем.

4)Контракт помогает устанавливать деловые отношения между людьми, которые производят и потребляют товары.

5)Партнеры обсудили условия договора и заключили выгодный контракт.

6)Вчера фирма произвела предоплату за доставку телевизоров в течение следующего месяца.

7)После заключения контракта мы оплатили расходы за доставку и получили квитанцию об оплате.

8)Для заключения правового контракта участники договора должны быть юридически компетентны.

9)Стороны рассмотрели условия доставки и страхования, их юридические права и обязанности.

10)Обе стороны несут ответственность за четкое выполнение всех основных пунктов контракта.

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