Law of contracts

Question 1

Contracts

Answer 1

 A contract is concluded upon the mutual and congruent expression of the parties’ agreement intended to give rise to obligations to perform services and to entitlements to demand services.
 The risk shall pass on the other party upon performance.  Freedom:
– to conclude a contract
– to choose the contracting party – type
– content of the contract

Question 2

Breach of contract:

Answer 2

any act or behaviour of the obligor (seller) or obligee (buyer) that prevents or encumbers the realisation of the aim of contract or leads to any defect of the performance

Question 3

Responsible custody (safekeeping)

Answer 3

 in the interest of another person
 without being entitled or obliged
 at the cost and risk of the entitled party
 shall not use the thing unless its use is required for maintenance

Question 4

WARRANTY

Answer 4

o Objective consequence of the defective performance (without justification)
o On the basis of law
▪ The obliger (seller) is obliged to compensate
▪ Regardless of whether his/her behavior was
▪ Intentional
▪ Negligent
▪ Or he/she acted in good faith

Question 5

Defective performance:

Answer 5

o The goods (e.g. animal) or service does not comply with the legal characteristics or with the characteristics stipulated in the contract and the defect existed at the time of delivery

Question 6

Exclusion of liability

Answer 6

o May be excluded with mutual agreement
o The exclusion is not valid:
▪ If caused intentionally, by serious negligence, or by crime
▪ The goods (animal) damages life, physical integrity, health
▪ There is no proper compensation

Question 7

Expiry of a right to warranty

Answer 7

 The obligee’s right to warranty shall lapse after one year from the delivery date.
 In connection with contracts that involve a consumer and a business party, the obligee’s right to warranty shall lapse after two years from the delivery date. If the things supplied under a contract that involve a consumer and a business party are second-hand, the parties may agree on a shorter limitation period, however, the limitation period may not be less than one year in this case either.

 As regards any part of the thing that has been repaired or replaced, the limitation period for the right to warranty shall recommence.
Obligor’s claim of enrichment
 In the event of replacement or withdrawal, the obligee shall not be liable to compensate for the loss in value if it has occurred in consequence of proper use.

Question 8

Time limit of warranty for animals:

Answer 8

limitation period: 1 year

 restart after change or rectification

Question 9

Commercial guarantee

Answer 9

 Any person who guarantees performance of a contract or is required by law to provide guarantee shall assume liability for lack of conformity during the guarantee period under the conditions set out in the guarantee statement or in the relevant legislation. The guarantor shall be released from liability if he is able to prove that the cause of the defect occurred after performance.
 This guarantee shall not affect the obligee’s legal rights

Question 10

Different forms of breach of contracts

Answer 10

 Obligor’s delay
 Obligee’s delay (late acceptance)
 Impossibility of performance
 Withholding performance (refuse to
perform)
 Defective performance (lack of
conformity)

Question 11

Legal characteristic:

Answer 11

 legislation
 defect, deficiency, characteristic:
– decrease significantly or prevent proper use
or
– decrease significantly economic or market
value

Question 12

Proper use:

Answer 12

 expressed by the buyer
 public opinion at the time and place of
sale
(exc. against law or science)

Question 13

Burden of proof:

Answer 13

buyer’s obligation to prove:
 defect
 significance
 origin

Question 14

Exemption from liability:

Answer 14

 obligee (buyer) knew or

 should have known the defect

Question 15

4 basic rights

Answer 15

 repair (treatment) or replacement
 reductionof price
 withdraw from the contract (termination of
contract)