04 Formation of a contract

Question 1

What are objective elements of the declaration of intent?

1.
2.

Answer 1

• declaration itself
• express or implied declaration

Question 2

What are subjective elements of the declaration of intent?

1.
2.
3.

Answer 2

• desire to act (conscious and deliberate act required)
• desire to enter a legal transaction (he must be aware that the declaration has legal consequences)
• desire to enter a specific legal transaction, e.g. sales contract (he or she must be aware that the declaration has specific legal consequences)

Question 3

Offer and acceptance only become effective when…

Answer 3

• the declaration of intent has reached the other party (=effectiveness)
• only becomes effective when it arrives in the SPHERE OF CONTROL of the adressee and he / she has the possiblity to take note of the declaration

Question 4

A declaration of intent…

…made in the absence of the other party:
…. made in the presence of the other party:

Answer 4

• case-by-case decision
• written/ oral transfer of declaration

Question 5

What is the sphere of control?

Answer 5

• even third persons can be seen as part of the sphere of control of a party if they are authorized to receive and forward declarations of intent (if involved: reception of declaration takes place atm the letter is passed on contrwcting party under normal circumstsnces!

Question 6

What is the offer?

Answer 6

• declaration of one party that he/ she wants to enter into a contract, i.e. the declarant party must have the intention to be bound
• in sales contract mostly the sellfer
• §145

Question 7

Offer and acceptance become effective when…

1.
2.

Answer 7

• the said declarations of intent must be made (intention needs to be expressed) AND(!)
• the said declaration of intent must reach the other party (delivered to addressee or when it arrives in the sphere of control of the addressee and she / he has the possibility to take note of the declaration

Question 8

When does the declaration of intent become effective when the party that it is send to is not present?

Answer 8

• it becomes effective at the point of time when this declration reaches him

Question 9

What does sphere of control mean?

Answer 9

• under normal circumstances the addresse would be in the position to get to know it
• and, according, to common practise, it can be expected of him/ her
• • “possiblity to become aware of the declaration”

Question 10

Under what circumstances is the declaration of intent successfully received?

1.
2.

Answer 10

• when it is put in the sphere of control
• AND the party has the possiblity to become aware of it

Question 11

If a third person is involved, the reception of a
declaration of intent takes place when….

Answer 11

… at the moment the letter is passed on the contracting party under normal circumstances

Question 12

Reception of a declaration of intent.
In what order do I have to find the aspects?

Answer 12

1. was the declaration of intent made? (intention to sht…)
2. was it put in the sphere of control?
3. did the person have the possibility to become aware of it?

Question 13

1. Effectiveness
2. Reception

Answer 13

1. declaration of intent made + delivered to other party
2. declaration has been placed in sphere of control + possibility to become aware of it