Text в. Contracts

A contract is an agreement between two or more competent parties which makes an enforceable obligation. Should one party fail to keep the agreement, the other party may take the case to court for enforcement.

Contracts may result from informal or formal action. Informal contracts are made clothes cleaned at the dry cleaner, or have your shoes repaired at the shoe shop. Other contracts, such as purchasing real estate, are formal transactions and may require legal assistance in drawing up the agreement and checking the accuracy of ownership. Some agreements relate to personal matters for practical purposes and are not enforceable by the courts.

Certain elements are necessary in order for a contract to be valid and enforceable by law. These essentials are as follows:

1. Mutual assent. There must be an offer and acceptance. Mutual assent takes place between the parties when they are in complete agreement on the terms of the contract. In law, this is called “the meeting to the minds”, meaning that both parties understand and are willing to enter into the agreement. Under the principles of law, a contract is not valid unless the parties freely agree.

2. Competent parties. For a contract to be valid, the parties making a contract must be considered competent. This means that the people involved must have the ability to fully understand the extent of their rights and obligations in the matter. Certain individuals are prevented by law from making enforceable contracts.

Among those considered not competent under the law are minors. A minor is a person who has not reached a specified age which is considered to be the age of full maturity with the ability to make

judgements. Anyone under the age of 18 is not considered competent and may not enter into legal contracts.

When people do not have the mental ability to understand the na­ture of contracts, they may bе declared incompetent in a court of law. Contracts made with such people are not enforceable.

3. Legal purpose. To be valid, a contract must not be contrary to the law or to the interest of society! The terms of any agreement which are illegal or are harmful to the public, health or morals are in fact not a contract because they are not enforceable. Examples of illegal agreements include those involving agreement to steal or to accept stolen goods.

It is also illegal to enter into agreement to give false testimony for a fee. Such agreements do not meet the requirements of being lawful.

4. Consideration. There must be something of value exchanged between the parties to make the contract binding. What either party agrees to do in return for the promise received is known as consideration.

Consideration is not always in the form of money. It may include services, goods, or a promise not to do something one has the legal right to do.

5. Legal form. A contract may be informal or formal. Many contracts are simple and informal, and few of such contracts would involve the exchange of much money. Problems arising in making informal contracts may be resolved without court action. Other contracts, such as the

purchase of real estate, must be formal, for they involve the exchan­ge of large amounts of money.

Contracts may be either written or oral. The nature of some tran­sactions requires written contracts. A contract for labor and mate­rials is not always in writing, but a written contract helps to avoid misunderstandings.

Notes to the text:

the contract is valid - договор в силе

to fail to keep the agreement - не сдержать обещание

Exercise 2. Guess the meanings of the following words and say:

1. Who is who:

1) any one human being a) attorney

(contrasted with society)

2. person who practices law b) contractor

3. person not yet legally of age c) individual

4. person, business firm, that d) lawyer

enters into contracts

5. person with legal authority e) minor

to act for another in business

or law

II. What is what:

1. immovable property consisting a) contract

of land and buildings

2. right of possessing b) law

3. one of the persons or sides c) real estate

in a legal agreement

4. standards of behavior; princip- d) party

les of right and wrong

5. binding agreement between e) ownership

persons, groups

6. rule made by authority for the f) morals

proper regulation of society

or for correct conduct in life

Exercise 3. Agree or disagree. Explain why you would agree or disagree with each of these statements.

1. It is necessary to sign a written agreement for the purchase of a suit of clothes for the contract to be binding.

2. A contract is binding even if you sign it just to get rid of a persistent salesperson.

3. A contract to purchase real estate must be in writing.

4. A contract is binding even if it involves breaking the law.

5. You are obligated to return or pay for goods sent to you that you did not order.

6. A contract is binding even if you misunderstand part of it.

7. It is legal for minors to make purchases using their parents credit card.

8. A contract is binding even if it is signed without being read.

9. A contract is binding even if it is entered into under pressure or threat.

Exercise 4. Give some facts from the text to prove the statements .

1. An agreement of a person that is younger than the recognized legal age to buy a contract item is not binding.

2. Contracts with individuals or firms without required licences are not valid.

3. It is not possible to take legal action to collect the money won in gambling.

Exercise 5. Give adequate Russian equivalents of the words "consider", "fail", "matter". Translate the sentences.

a) consider, consideration, considerable - общий элемент смысла: включение во внимание и учитывание. Русские эквиваленты: to consider - рассматривать, обсуждать; обдумывать; считать; принимать во внимание; consideration - рассмотрение, обсуждение; соображение; вознаграждение,компенсация; considerable - значительный, важный.

1. Please consider my suggestion.

2. We must consider the feelings of other people.

3. Do you consider it wise to interfere?

4. The contract considered required some details.

5. The problem is given a careful consideration by everybody.

6. No decision has been taken yet as the contract is now under consideration.

7. Time is an important consideration in this case.

8. He's the sort of man who would do anything for a consideration.

9. Mr. Black is a considerable man in local affairs.

b) fail, failure - общий элемент смысла: невыполнение ожидаемого, или должного. Русские эквиваленты: to fail - потерпеть неудачу; не удаваться; недоставать, не хватать; ослабевать; не сделать что- либо; failure - неудача, провал; недостаток; неспособность.

1. He never rails to write to his mother every week.

2. He has been failing in health for the last two years.

3. Our water supply has failed. .

4. All our attempts to sign the contract failed.

5. Failure in an examination should not take you away from trying again.

6. His failure to answer questions made the police suspicious.

с) matter - общий элемент смысла: нечто материальное, существенное; то, что имеет значение. Русские эквиваленты: вещество, материал; сущность, содержание; предмет; вопрос, дело.

1. There are several matters to be dealt with at the committee meeting

2. The matter in your essay is good but the style is bad.

3. Chemistry deals with changes in the composition of matter, physics is concerned with changes in the location or size of matter.

Exercise 6. Make up English - Russian pairs of the word groups equivalent in meaning. Use them in sentences of your own.

As a matter of fact; in a matter of seconds; it does not matter; it is a matter of common experience; it is a matter of common knowledge; no matter.

За какие-нибудь секунды; неважно; каждый знает из опыта; не имеет значения; фактически; общеизвестно

Exercise 7. Which part of Text В is the introduction, the main part, the conclusion? Give the numbers' of paragraphs that make up each part.

Exercise 8. Find sentences which give the definitions of the terms "contract" and "consideration".

Exercise 9. Shorten the second paragraph. Make each sentence as short as you can.

Exercise 10. Identify the key-sentences in paragraphs 4, 8, 12.

Exercise 11. Which paragraphs have the answer to this question: "Who is considered incompetent and unable to enter into a contract agreement?" Answer the question.

Exercise 12. On the basis of the previous exercises give a short summary of the text.

Exercise 13. Head Text С and get ready to answer the following questions:

1. What types of contracts are legally required to be in writing?

2. What are four suggestions that can he made to persons preparing and / or signing a contract?

3. Under what conditions can a contract be declared defective?

4. Under what conditions can a sales contract be oral?