BUSINESS LAW 7 - Basic contract law.pptx": Flashcards
What is an obligation in legal terms?
An obligation is a legal duty by which a person is bound to do or not to do a certain thing. It can stem from a contract, tort, unilateral declaration, law, or court decision.
What are the basic principles of European Contract Law?
Parties are free to enter into a contract and determine its contents.
Contracts are subject to good faith, fair dealing, and mandatory rules established by the Principles.
National mandatory laws should also be considered.
What are the conditions for the conclusion of a contract?
A contract is concluded if:
The parties intend to be legally bound.
They reach a sufficient agreement without further requirements.
No specific form (e.g., writing) is required unless mandated by law.
What constitutes an offer in contract law?
A proposal is an offer if:
It is intended to result in a contract upon acceptance.
It contains sufficiently definite terms to form a contract.
It can be made to specific persons or the public.
When is a contract considered concluded?
A contract is concluded:
When the acceptance reaches the offeror (if acceptance is dispatched).
When notice of acceptance by conduct reaches the offeror
What is a fundamental mistake in contract law?
A fundamental mistake is when a party may avoid a contract due to a mistake of fact or law if:
The mistake was caused by the other party.
The other party knew or should have known of the mistake.
The mistaken party would not have entered the contract had they known the truth.
What constitutes fraud in contract law?
raud occurs when a party is led to conclude a contract due to the other party’s:
Fraudulent representation (words or conduct).
Fraudulent non-disclosure of information required by good faith and fair dealing.
What are unfair terms in a contract?
Unfair terms are those not individually negotiated that cause a significant imbalance in the parties’ rights and obligations, contrary to good faith and fair dealing.
What is a threat in the context of contract invalidity?
A party may avoid a contract if it was concluded under an imminent and serious threat of an act that is wrongful in itself or wrongful to use as a means to obtain the contract.
When is a contract considered invalid?
A contract is invalid if it is:
Illegal.
Immoral.
Lacks capacity of one or both parties
How is a contract interpreted?
A contract is interpreted:
According to the common intention of the parties.
If no intention is clear, it is interpreted based on what reasonable persons in the same situation would understand.
