Business Law Notes

What is contract? How contract is described by common law and civil law? A contract. Contract described by Civil law. Contract described by Common law. Differences between civil and common law. Principles of contract law. Freedom of contract. Pacta sunt servanda. Pacta sunt servanda. What is offer and acceptance? What are differences and the main features? Example. An offer. How contract is included by offer and acceptance? Pre contractual relationship , duties. Pre contractual phase. Pre contractual relationships – Freedom of negotiation. Duties of the parties. Contract t erms and their differences. What have to be in sales contract.

a contract results from an agreement or consent and it is compulsory because as from the moment the parties reach that agreement they are obliged to fulfill its terms, subject to specific performance and compensation of damages

Common law: contract is basically a promise supported by a consideration

The right to freely agree an the terms of individual transactions;

Valid agreement has the force of law between its parties;

Pacta sunt servanda is a term which means agreements must be kept.

The offer takes effect when it reaches the other party;

The offer may be withdrawn until the offer has taken effect;

Ignoring an offer does not lead to conclusion of contract. Rejecting the offer terminates the offer with the effect that it cannot later be accepted. If the acceptance reaches the offer party after the deadline a contract has not been concluded. Acceptance can be withdrawal if the message of withdrawal reaches the one sending the offer before or at the same time as the acceptance would have became effective.

An acceptance becomes effective when it reached the one who send the offer;

The duty of confidentiality (If the party expressly declares that such information is to be considered confidential, the another party is under obligation not to disclosure it or use it unlawfully. The breach of confidentiality implies liability in damages).