3. The Performance of Contractual Obligations

Contract law allows contractual relations to be adjusted when they have been thrown out of balance by unforeseen circumstances. The task of adjustment is relatively easy in cases in which both parties made a mistake. The problem of mistake becomes more intrac­table when the error is chargeable to only one party. Catastro­phic events such as inflation, political upheaval, or natural dis­asters may upset the economy of a contract. [Political upheaval is a very big change connected with the government or public affairs of a country that often causes problems.] In the case of natural catastrophes, relief is frequently available under theories of force majeure and "act of God". [Force majeure is an event that cannot be reasonably anticipated or controlled. Act of God is an event that is caused by natural forces, such as a storm, flood, or fire, which you cannot prevent or control.] When the circumstances are economic in their nature, as with severe infla­tion or deflation, a solution is difficult to find. [Inflation is an increase in the volume of money in circulation relative to avail­able goods and services resulting in a continuing rise in the general price level: Deflation is the process of reducing the amount of money in circulation in order to lower or keep steady the prices of goods.] A party who benefits from inflation in one contractual relation may suffer from it in another. A general readjustment in contracts would be enormously complicated and time-consuming and would interject an undesirable element of uncertainty into business activity. Only under exceptional circumstances usually in the form of special legislation - are contractual relations readjusted.

Performance - выполнение; contractual - договорный; overbalance/ unbalance -вывести из равновесия; intractable - неподатливый; chargeable - относимый на счет; natural disasters – стихийные бедствия; economy - структура;catastrophe - катастрофа; relief - освобождение от обязанностей; anticipate - предвидеть; relative to - относительно; benefit - извлекать пользу; interject - вставлять.

Ex. 4. Agree or disagree with the following statements.

1. Contract law allows contractual relations to be adjusted when they have been overbalanced by unforeseen circumstances.

2. The task of adjustment is relatively difficult in cases in which both parties made a mistake. 3) The problem of mistake be­comes more flexible when the error is chargeable to only one party. 4) Bad relationship between two parties may upset the economy of a contract. 5) When the circumstances are natural, a solution is difficult to find. 6) Only under usual circumstances are contractual relations readjusted.

► Ex. 5. Translate the following words and phrases from Russian into English.

Относимый на счет; непредвиденное обстоятельство; кон­трактные обязательства; сторона в договоре; политический переворот; стихийные бедствия; расстраивать; структура; доступный; форс-мажор; предвидеть; естественные силы; предотвращать; инфляция; освобождение от обязанностей; страдать от; переделка; отнимающий много времени; вставлять; нежелательный; неуверенность; контрактные отношения; денежное обращение; выполнение; договор­ный; приводить в порядок; вывести из равновесия; урегу­лирование; относительно; неподатливый; ошибка; деловая активность; исключительное обстоятельство; законодатель­ство; переделывать; дефляция; решение; относительно; иметь своим результатом; продолжающийся рост; уровень цен; извлекать пользу.

► Ex.6. Complete the following statements. Choose one topic to speak about a) contractual obligations and the problem of mistake; b) contractual obligations and catastrophic events; c) contractual obligations and economic circumstances. Retell the text The per­formance of contractual obligations.

1) Contract law allows ... 2) The task of adjustment is ... 3)The problem of mistake becomes ... 4) Catastrophic events are ... 5) Catastrophic events may upset... 6) In the case of... relief is ... 7) When the circumstances are ... a solution is ... 8) A party who benefits from ... 9) A general readjustment in contracts would be ... and would interject ... 10) Contractual relations are readjusted only under... and in the form ...

^{► Ex.1. Restore the word order in the following statements.}

1) Contract law with sanctions deals. 2) Sanctions the form of money take damages. 3) In case of delay an can bring action of in the fulfilment of contractual obligations a damaged party party damages against the responsible. 4) In case of a damaged party party can bring an action of damages erasure in the fulfil­ment of contractual obligations against the responsible. 5) Restitution to the party damaged party money he has given the breaching restores. 6) Expectancy the damaged party as if the contract had been fully rewards performed.

► Ex.2. Scan through the text. Work in pairs to question the text and to give answers.