ch2 contract law.ppt

Chapter 2: Contract Law Chapter Outline Introduction to Contract Law Role of contract What is contract Consideration Types of contract Elements of a contract Role of contract legal form for conducting all sorts of business activities: Sales contract Transportation contract Contract of payment Insurance contract back Definitions of Contract United States: Contract is a promise or set of promises for which the law will provide a remedy in the event of a breach. French Civil Code: Contract is a mutual assent with which one person or more is obligated to give a thing, to do or not to do a thing to one person or more persons. China: A contract shall be an agreement whereby the parties establish, change or terminate their civil relationship back forward Consideration Consideration is the exchange of promises or conduct for a promise that has some value for each party Is there consideration? Betty agreed to pay Ralph €100 if he did not drink beer until he celebrated his 30th birthday. Betty agreed to pay Ralph €100 when he celebrates his 30th birthday tomorrow Is Consideration required for Contract Definitions Common law countries Yes Civil law countries No Is Donation Enforceable? Is Donation Enforceable? Common Law Countries No Civil Law Countries Yes China (Art. 186) Contract of gift Prior to the transfer of rights to the gift property, the donor may revoke the gift. The previous paragraph does not apply to any gift contract the nature of which serves public interests or fulfills a moral obligation, such as disaster relief, poverty relief, etc., or any gift contract which has been notarized. International Definition of Contract A contract is concluded, modified or terminated by the mere agreement of the parties, without any further requirement. Is consideration required internationally? No back Types of Contract