Contract law. Учебное пособие

loss — ущерб, потеря mitigate — возмещать

punitive damages — денежное возмещение убытков в виде штрафа

compensatory damages — компенсаторное возмещение убытков nominal damages — номинально-символическое возмещение убытков

liquidated damages — заранее оцененные убытки expectation damages — ожидаемое возмещение ущерба reliance damages — фактическое возмещение ущерба

Exercises

1. Liquidated damages clauses are only enforceable when:

a)the innocent party wants to punish the breaching party,

b)a breach will cause considerable loss to a party,

c)the loss to the innocent party will be either too uncertain or too difficult to calculate,

d)the parties agree that they’d rather not calculate actual dam-

ages,

e)the court approves the damages amount before the contract is executed.

2.Contract damages can’t usually be geared toward punishing thebreachingparty.Thismeansthatcontractdamagescan’tusuallybe:

a)personal damages,

b)penal damages,

c)punitive damages,

d)proper damages.

3.Match the words in column A with the words in column В as they are used in the text and make sentences with them.

AВ

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4. Match the following words with their definitions:

1)accord;

2)breach of contract;

3)delegation of duties;

4)disabled person;

5)escape clause;

6)substitute;

7)liquidated damages;

8)legal injury;

9)monetary damages;

10)specific performance.

a)item of some contracts, which lets termination of a contract without responsibility for loss or damages,

b)to change some items or the entire contract, creating a new contract,

c)the person, who can’t take responsibility for the contract,

d)damages that are agreed in advance,

e)agreement to change the obligations under a contract,

f)to transfer the contractual obligations,

g)refusal to perform contractual terms,

h)a form of special work or relief for the injured party,

i)result of an unenforceable contract or fraud,

j)money awarded by the court for loss or injury.

5. Answer and discuss the problems:

1) Furniture Construction Company (FCC) and Mrs. Jess made a contract to remodel the bedroom in her house from the solid

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Italian wood. However, the company delivered new furniture of the top-grade Spain wood. The substituted materials were actually more durable and solid, but there was difference in price. Must Mrs. Jess pay the difference in price? Was there a breach of contract? What damages may be awarded to Mrs. Jess?

2)Streetman Company contracted to build a garage for Tom according to his plan. After the garage had been completed, there were several defects. The company declared that Tom had made some mistakes in his plan and refused to fix these defects. Tom sued

Streetman Company to punish them. What damages, if any, is Tom entitled to?

6.Translate into English.

1)В случае неисполнения или разрыва контрактных отношений виновная сторона должна возместить причиненные убытки.

2)Договором предусматривается изменение условий только по соглашению обеих сторон.

3)В случае нарушения условий договора пострадавшая сторона вправе требовать денежную компенсацию в размере, предусмотренном контрактом.

4)Согласно договору, пострадавшая сторона получила компенсацию $2 000.

5)Перевод договорных прав и обязанностей был осуществлен 8 августа 2007 года по соглашению обеих сторон и письменному согласию кредитора.

6)Стороны освобождаются от ответственности по договору в случае возникновения форс-мажорных обстоятельств.

7)Компенсаторное возмещение убытков осуществляется

вразмере возмещенного ущерба.

8)Суд назначает пострадавшей стороне выплату номинального возмещения убытков в случае нарушения прав.

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SAMPLES OF CONTRACTS

Read and translate the text

PERSONAL LOAN CONTRACT

This contract («Contract») is an agreement between {Name}, known as «Borrower», and {Name}, known as «Lender».

Borrower wishes to borrow {amount in dollars}, known as «Loan»,fromLender.LoanwillbefurnishedtoBorroweron{Date}.

Conditions for this Loan are as follows:

Borrower will begin repayment of Loan on {Date repayment will begin}.

The repayment plan {details of the repayment plan, including any installments, interest, and how payments will be made to

Lender}.

The final date for repayment will be {Date}.

Failure to repay the Loan within {number of days} of {Date} willresultinthematter{beingturnedovertocollection,addressed in court, etc.}.

Borrower and Lender agree to the conditions above, and sign to that effect in the presence of a notary public on the {date} day of

PAYMENTAGREEMENT CONTRACT

By this contract, {Payer} agrees to make payments to {Payee}, hereafterknownas«Lender»,bythefollowingscheduleinexchange

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for{Product/servicesrendered}.Thispaymentscheduleisenforceable by law, and the methods described below will be use in cases of delinquent payment.

By this agreement, it is agreed that a payment of {amount} will be surrendered to the Lender every {interval} until the total of the payment required, which is {amount}, has been delivered. The payment plan will take the following form:

•{First Payment Date,Amount},

•{Second Payment Date,Amount},

•{Third Payment Date,Amount},

•{Fourth Payment Date,Amount},

•{Fifth Payment Date,Amount},

•{Sixth Payment Date,Amount}.

These payments include any interest and other charges that may apply.

This agreement is binding, and failure to meet its terms will allow the Lender to take certain recourse. First, late payments will incur a fee of {fee} every {interval}. Insufficient payment and bounced checks will incur a fee of {fee}. If payment should not be delivered at all, Lender will be entitled to {describe how Lender will act, such as contacting a debt collection service}.

In addition, the following terms and conditions apply: {list terms and conditions}.

By signing this agreement, all parties agree to the terms as described above.Alterations to this agreement can only be made by both parties and must be placed in writing. Both parties will receive a printed copy of this agreement, and will be responsible for upholding its terms.

HOUSE RENTAL CONTRACT

This contract is an agreement between {Renter}, who will be renting a house from {Owner}, who owns the house being rented. This arrangement will begin on {date} and will end on {date}.

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The rent for this house will be {rent}. This amount must be paid on {date} every month. Late payments will incur a fee of {fee}. Adeposit in the amount of {deposit} will be held for the duration of the lease and will be returned to the renter within one month after the keys are surrendered.

The major rules regarding this house are as follows: {house rental rules, concerning pets, smoking, and other major violations}. By signing this agreement, the renter acknowledges that a complete list of these rules has been provided to him or her, and that the renter has read and understood these rules.

The owner has a right to enter the house with an advanced notice of 24 hours for any reason. In an emergency, owner may violate this right and enter immediately. Emergencies include those instances in which the property is in immediate danger, such as from a fire or flood.

The renter will make his or her best effort to keep the house in good condition. No major alterations will be made to the house without prior discussion with the owner. This includes painting, changes to the lawns, and installation of any permanent changes.All maintenance for the house will be taken care of by the owner, and the tenant must notify the owner immediately of maintenance required.

Utilities will be the responsibility of the tenant. The renter will set up and shut down all utilities. This includes water, electric and gas. Trash services are provided by {trash} and will be paid by the tenant.

Signing this agreement implies full understanding of the above conditions and the rental agreement. This agreement cannot be altered without full informed consent in writing provided by both parties. In certain cases of violation, the tenant may be required to vacate without appeal.

_______________________________

(Renter)

_______________________________

(Landlord)

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OFFER TO PURCHASE REAL ESTATE

{Name}, henceforth known as «Buyer», is putting forth an offer to purchase from {Name}, henceforth known as «Owner», the property located at {address of property}, and further described as

{more description of the property in question}. Thetotalpriceofferedforthepropertyis____________________. Buyer will offer a down payment of ____________________. Buyer will secure a mortgage through ____________________

_____________ in the amount of ____________________, payable over a __________ period.

Closing costs will be paid by ___________________________

___________________.

The sale is conditional upon a satisfactory inspection of the property, to be conducted by ______________________________

___________________.

Owner agrees that the following personal property is a part of the sale of the overall property:

______________________________________________________

______________________________________________________

_____________________.

Owner agrees to repair the following prior to sale: ________

____________________________________________________. Buyer and Owner agree that the closing date for the sale of this

property is ________________________.

Any disputes between Buyer and Owner will be resolved by

______________________________________________________

______________________________________________________

____________________________________.

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LAND SALE CONTRACT

The first party (henceforth known as «Buyer») agrees to purchase from the second party (henceforth known as «Seller») the land (henceforth known as «Land») located at the following address: {address}, in the city of {city}, county of {county}, and State of {state}. Further legal description of the Land is as follows:

{details of the Land, perhaps using the description listed in public record}

This Contract is executed on {date}, {year}.

The following terms and conditions apply to this Contract:

1.Price: buyer agrees to purchase the Land described above, paying a total purchase price of {amount in dollars}. Buyer will pay {amount in dollars} for a down payment, and thereafter payments will be made monthly. Monthly installments will be in the amount of {amount in dollars}, including a {number} % interest rate, to be determined by {description of how interest rate will be computed}. Said payments will start on the {date} of {month}, {year}, and be due on the {date} of every month until such time as the entire payment amount has been satisfied.

2.Late fees: buyer agrees to pay the monthly installment on the due date, with the understanding that a {amount in dollars} late fee will be added to the monthly payment if said payment is more than {number} days late.

3.Ending of contract: the entire balance must be paid by the {date} of {month}, {year}. If there is a remaining balance on this date, the interest on said balance shall be {number} %, with a {amount in dollars} late fee applied every day month until the balance is paid in full.

4.Default: if Buyer does not pay {number} payments on time, Seller has the right to declare Buyer in default of this Contract.

5.Title: upon final payment, when entire purchase price has been paid in full, Buyer agrees to provide Seller with the title(s) and/or deed(s) to the Land. Seller further agrees to relinquish any

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and all claims to the Land. Buyer agrees to remove Seller from any liability with regard to issues that arise after the date of the title transfer. Buyer agrees to take complete responsibility, financial and otherwise, for the Land upon title transfer.

6.Insurance:seller agrees to maintain a hazard insurance policy on the Land of no less than {amount in dollars} until the completion of the payment plan, at which point any insurance becomes the responsibility of Buyer.

7.Taxes: all taxes on the Land shall be the responsibility of Buyer as of the date of this Contract.

Additional terms:

{insert description of any other terms agreed upon by both

Buyer and Seller; must be inserted prior to the signing of the document}

This Contract is executed on the {date} of {month}, {year}. We, the undersigned, agree to this Contract and all its terms.

EMPLOYMENT CONTRACT

This agreement is made and takes effect on MM/DD/YYYY between (company), a (State) corporation, hereafter called «Company» and (employee), hereafter called «Employee».

Duties of the parties:

1. The Company hereby employs Employee for a term commencing on the date of this agreement and Employee hereby accepts such employment.

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2. During the Employee’s employment he/she will:

a)devote such time and effort as may be reasonably required by the Company to perform his/her duties;

b)not engage in any other employment or business activity without the Company’s written consent;

с) perform such duties as may reasonably be requires of him/ her by the Company.

3.For services rendered by the Employee, the Company shall pay him/her as follows:

a)the annual sum of $X, calculated as follows (insert compensation formula);

b)(оptional) а bonus of ($X, Y % of sales, etc.) payable (monthly, quarterly, annually) based upon (performance goals);

c)(оptional) non-payroll benefits to include health insurance, travel and business entertainment expenses, and other items specified inAttachmentA.

4.Employee agrees that during his/her term of employment by the Company and for a period of one year after termination of such employment, he/she will not act as an employee, agent, broker, shareholder, or otherwise engage in any business selling products similar to those customarily sold by the Company within the States of (specify).

5.Employee understands that he/she will acquire confidential information of business value to the Company during the course of his/her employment. Employee hereby agrees not to divulge such confidential information to any other party, or to use such information for his/her own profit except in performance of employment activities beneficial to the Company.

6.This agreement is an employment-at-will agreement. The Company may, at any time, with or without cause, discharge the Employee by giving him/her written notice of such discharge.

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