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1、 CONTRACT LAW Lesson One Introduction Lesson Two Performance and Non-Performance Lesson Three Contract Remedies and Computation of Damages Lesson Four Rights of Third PartiesLesson One Introduction Case: the Cotton Cases of 1973 “The critical issue is whether there was an enforceable promise to buy
2、for each promise to sell. We believe there was.”contracts I. Contract Nature Contractand contract law A contract is a promise or a set of promises which the law will protect and enforce. The common law countries stress the contract as a kind of “promise,” the civil law countries concern on the “agre
3、ement between the parties.” A promise or set of promises where the law gives a remedy when breached, and the performance of which the law recognizes as a duty. Contract law Contract law is most obviously the law relating to agreements or promises. The bulk of American contract law is judge-made case
4、 law. The Uniform Commercial Code The Restatement of Contracts 合同法注釋匯編合同法注釋匯編 合同法重述合同法重述 2. Formation of Contract offer and acceptance Offeror and Offeree Meeting of the minds Mutual assent Manifestation of willingness “mirror image” “mailbox rule” Offer and Acceptance Consideration No Defenses to F
5、ormation Offer and AcceptanceWhy important to have offer and acceptance rules? Helps court decide whether negotiations or an actual bargain Ensures parties agreed on a minimum quantity of terms Gives court a reliable method to determine content of deal Legal Significance of Offer Creates power of ac
6、ceptance in offeree Offeree can conclude a deal and bind offeror by proper assentTermination of OfferTermination by Offeree Rejection Not terminated by inquiries or request for different terms Counter-offer Expiration of time period If no time for acceptance, the offer is deemed a reasonable time de
7、pending on circumstancesAcceptanceWho may accept? Person to whom offer was addressed or if in the class of persons to whom addressedAcceptance must be unequivocal. Common Law: Mirror image rule acceptance must mirror terms of offer Commercial Law: Any acceptance indicating intention to enter contrac
8、t is valid UNLESS made conditioned on acceptance of new terms 3.Necessary Elements of a Contract (1) There must be an agreement between the parties; (2)There must be consideration to support a contractual claim; (3)There must be two or more parties who have the legal capacity to contract; (4) Subjec
9、t matter of the contract must be lawful; (5) There must be proper form for a contract.Consideration Consideration A benefit of legal value which must be bargained for between the parties.Elements of Consideration1. Bargain must exchange somethingGift no bargain, no consideration2. Legal Valuea. Gene
10、ral rule adequacy or fairness of consideration not examinedb. Majority view party must incur detriment by doing something not legally obligated to do or refraining to refraining from something he has a right to do. 4. Classification of a Contract -forms (1)bilateral contract (2)unilateral contract -
11、expression (1) an express contract (2) implied-in law contract(quasi-contracts) -legal effects (1) valid contract (2)void contract (3)voidable contract Express or Implied1. Express written2. Implied from conduct, past relationships Bilateral or Unilateral1. Bilateral - exchange of promises2. Unilate
12、ral exchange of an act for a promise Void or Voidable and Unenforceable1. Void no legal effect from beginning2. Voidable party may elect to avoid or ratify3. Unenforceable otherwise valid but for which a defense exists Enforceable contract Unenforceable contract defense5.Grounds for Nonperformance o
13、f Contracts (1) Mistake (2) Fraud (3) Lack of Capacity : Minors and Mental Incapacity(4)Duress and Undue Influence(5)Misrepresentation(6) Unconscionability(7)Illegal Contracts and Contracts Against Public PolicySummary To keep two points in mind: (1)a contract contains a present undertaking or commi
14、tment concerning future conduct of the parties, and (2)the law sanctions the commitment by putting its legal machinery behind it.Lesson Two Performance and Non-Performance 1.Rules: When parties make a bilateral contract, they exchange promises in the expectation of a subsequent exchange of performan
15、ce The principal goal of the rules applicable to the performance stage of such contracts is to protect that expectation against a possible failure of the other party to perform. 2.Problems: 1)Refuse o perform 2)Perform in an unsatisfactory manner 3.T o develop rules to the injured party, In addition
16、 to an claim for damages, the right to suspend its own performance and ultimately to refuse to perform if the other party fails to perform. 4.Conditions Two distinct effects: (1)to suspend performance (2)to terminate the contract Conditions -by time Conditions precedent (先決條件)先決條件) Concurrent condit
17、ions (共時(shí)條件)(共時(shí)條件) Conditions subsequent (后續(xù)條件)(后續(xù)條件) Conditions-by the way they are created A. Express conditions B.Constructive conditions Actual failure of an express or constructive conditions 1)hindrance, prevention or noncooperation 2)waiver or estoppel 3) impossibility or commercial frustratio
18、n禁止反言原則禁止反言原則”(equitable estoppel) 是英美法系國(guó)家的一般契約理論,其基本內(nèi)涵是英美法系國(guó)家的一般契約理論,其基本內(nèi)涵是是“My word is my bond”言行一致,不得出言行一致,不得出爾反爾。英美法系國(guó)家傳統(tǒng)的契約理論是:合同成爾反爾。英美法系國(guó)家傳統(tǒng)的契約理論是:合同成立、變更均須有對(duì)價(jià)立、變更均須有對(duì)價(jià)(consideration),才能產(chǎn)生強(qiáng),才能產(chǎn)生強(qiáng)制執(zhí)行之效力??墒菍?shí)踐中大量存在著這樣的現(xiàn)象制執(zhí)行之效力。可是實(shí)踐中大量存在著這樣的現(xiàn)象,某人許諾贈(zèng)與他人物品或答應(yīng)他人無(wú)償為其做某,某人許諾贈(zèng)與他人物品或答應(yīng)他人無(wú)償為其做某事,但不久又反悔而使
19、受諾人遭受損失。受諾人受事,但不久又反悔而使受諾人遭受損失。受諾人受到損失后卻無(wú)法律依據(jù)阻卻權(quán)利人權(quán)利的行使。到損失后卻無(wú)法律依據(jù)阻卻權(quán)利人權(quán)利的行使。 20世紀(jì)世紀(jì)40年代以前,英美法系國(guó)家的法官解決年代以前,英美法系國(guó)家的法官解決這一問(wèn)題的方法,使法律天平平衡的砝碼,一是在這一問(wèn)題的方法,使法律天平平衡的砝碼,一是在衡平法上采用禁反言,再是盡其所能尋找有效的約衡平法上采用禁反言,再是盡其所能尋找有效的約因。這種方法往往產(chǎn)生牽強(qiáng)附會(huì),徒增了人們對(duì)法因。這種方法往往產(chǎn)生牽強(qiáng)附會(huì),徒增了人們對(duì)法律公正性的懷疑。律公正性的懷疑。 1877年英國(guó)法官卡恩斯勛爵年英國(guó)法官卡恩斯勛爵(Lord Cair
20、ns) 審理審理 Hughes V.Metropolitan Railway Co.案時(shí)就提出了案時(shí)就提出了禁止反言的觀念,但并未引起人們的重視。直至禁止反言的觀念,但并未引起人們的重視。直至1947年,卡恩斯勛爵的觀念被英國(guó)大法官丹寧年,卡恩斯勛爵的觀念被英國(guó)大法官丹寧(Lord Denning)傳承,并將其確立為一個(gè)法律原則。傳承,并將其確立為一個(gè)法律原則。Parol Evidence Rule Evidence of prior or contemporaneous negotiations or agreements that contradict or vary terms is i
21、nadmissible if written contract is intended as complete and final expression of the parties. Lesson Three Contract Remedies and Computation of Damages I. the American system of contract remedies Not to compel promisors to perform their promises To rely on the promises of others and provide relief to
22、 them in case of a broken promise. II. How do courts encourage promisees to rely on promises? 1. by protecting the expectation the expectation interest 2. by protecting the promisees reliance the reliance interest 3. by granting restitution the restitution interest III. Types of remedies 1.Remedy Le
23、gal remedies A. compensatory damages B. consequential damages C. punitive damages D. nominal damages 2. Equitable remedies A. specific performance B. rescission C. restitutionLesson Four Rights of Third Parties I. Third Party Beneficiary Contracts II. Assignment III. DelegationThe Uniform Commercial
24、 Code 統(tǒng)一商法典統(tǒng)一商法典sales and leasingTransfer of fundsCommercial paperBank deposits and collectionsLetters of creditBulk transfersWarehouse receiptsBills of ladingInvestment securities Secured transactions , etc.Typing the Contract A contract must contain the following information: 1. date 2.names of th
25、e parties 3.purposes of the contract 4.duties and responsibilities of each party 5. consideration for the contract 6.duration 7.signatures of all parties 8.witnesses or notarizaton , if applicableEnglish Contract StructureEnglish Contract Structure1. 封面封面2. 目錄目錄3. 正文正文4. 附錄附錄正文正文1.約首約首1)導(dǎo)言)導(dǎo)言2)鑒于條款)
26、鑒于條款3)過(guò)渡條款)過(guò)渡條款2.本文本文1)通用條款)通用條款2)專有條款)專有條款3.約尾約尾1)簽名)簽名2)蓋章)蓋章通用條款通用條款定義及解釋條款定義及解釋條款責(zé)任及義務(wù)條款責(zé)任及義務(wù)條款違約條款違約條款聲明及保證條款聲明及保證條款保密條款保密條款轉(zhuǎn)讓條款轉(zhuǎn)讓條款知識(shí)產(chǎn)權(quán)條款知識(shí)產(chǎn)權(quán)條款賠償條款賠償條款稅收條款稅收條款期限與終止條款期限與終止條款保險(xiǎn)條款保險(xiǎn)條款不可抗力條款不可抗力條款管轄法與爭(zhēng)議條款管轄法與爭(zhēng)議條款完整協(xié)議與可分割性條款完整協(xié)議與可分割性條款LICENSE AGREEMENT THIS AGREEMENT , entered into (place)on the 1
27、st day of January, 1998 by between ABC CORPORATION, a of _, and having its principal office at _, corporation organized and existing under the law of _, and having its principal office at_, (hereinafter referred to as XYZ) (Introduction)WITNESSTH(RECITAL) WHEREAS XYZ Has developed certain processes
28、, methods and techniques applied in manufacturing the Licensed Products hereinafter defined; and WHEREAS_, NOW, THEREFORE, in consideration of the premises and the mutual conveniences, the Licensee and Licensor, through consultation, agree to enter into this contract under the terms and conditions s
29、et forth as follows: (operative part)NOW IT IS HEREBY AGREED as follows: 1._, 2._, 3._. IN WINESS WHEROF the parties hereto have on the day and year first above written caused these presents to be executed and delivered in their behalf and in their corporate names respectively by their proper office
30、rs hereunder duly authorized and their respective corporate seals to be hereto attached by like authority. SIGNED by CONTRACTOR In the presence of:SIGNED by For and behalf of ABC CORPORATIONIn the presence of:Here- Hereafter (今后或?qū)?lái)的某今后或?qū)?lái)的某一時(shí)間)一時(shí)間) Herein (在本文件中)(在本文件中) Hereinabove (在上文)(在上文) Herein
31、after (在下文)(在下文) Hereof (在本文件中)(在本文件中) Hereto (在本文件中)(在本文件中) Hereunder (在下文)(在下文) Hereby (特此特此 ,因此),因此) Where- Whereby (借以)借以) Whereof (關(guān)于)(關(guān)于) Whereas (鑒于)(鑒于) Whereupon (此后立即)(此后立即)法律英語(yǔ)經(jīng)典表達(dá)法律英語(yǔ)經(jīng)典表達(dá) 1.in accordance with (按照(按照規(guī)定)規(guī)定) The arbitration is to be administered by the American Arbitration
32、Association and is to be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association. 2.SAVE(除非(除非,除除外)外) Save as otherwise provided in this Contract, each Party shall bear its own legal and other professional costs in relation to the preparation, negotiatio
33、n and entry into of this Contract. 3.NOTWITHSTANDING (盡管有(盡管有的規(guī)定)的規(guī)定) Notwithstanding clauses(a)and (b) of this Article 5.6 above, the Assigning Party may transfer all or part of its amount of the registered capital of the Company to an Affiliate (the “Affiliate Assignee”) of the Assigning Party on
34、the following conditions. 4. PROVIDED THAT但(前提)是但(前提)是 Provided that if any representation and warranty of a Party under Article B .1 is not true and correct in all material respects when made, or if there is a breach of Article E, then there shall be no Cure Period. 5.SUBJECT TO (根據(jù)根據(jù)的規(guī)定,在不抵觸的規(guī)定,在不
35、抵觸的前提下的前提下, 在符合在符合的情況下)的情況下) Subject to this section, an appeal shall be brought in such manner and shall be subject to such conditions as are prescribed by rules made under subsection 6.WHERE (如果如果,凡凡) Where a defendant is fined and the same is not forth with paid, the magistrate may order the defe
36、ndant to be searched.Exercises: Case Analysis Ms .Williams made a series of purchases of household goods from the Walker Thomas Furniture Co. from 1957 to 1962. These purchases include sheets, curtains, rugs, chairs, beds, mattresses, a washing machine and most recently stereo set. Each of the items
37、 was purchased on an installment plan agreement which Ms.Williams signed. Her last purchases was stereo unit for $514.She failed to make the required payments and as a result, the furniture company sought to take back everything she previously purchased, even though her total outstanding balance bef
38、ore purchasing the Stereo was just $164.Discussion Topic: Williams v. Walker-Thomas Furniture Co. Reference information about the case: A. Ms. Williams has 7 children and is separated from her husband .She has a limited formal education and maintains her household with the assistance of public funds
39、. B. The installment plan agreement included 14 contracts and each contained a long paragraph in extremely fine print. Part of the section provided that each payment made by the purchaser would be applied to the entire outstanding balance due. So each payment would actually pay a little bit of each Purchased items balance remaining . The furniture sto
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