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2020 3 6 1 INTRODUCTIONTOCONTRACTLAW AmIlumberedwithadodgycontract TableofContents 1 VocabularyP1582 ContractLawIntention 订约意图 agreement 协议 3 consideration 对价 4 capacity 订约能力 5 consent 意思表示真实 6 legality 订约目的合法 7 form 合同形式合法 ExceptioNonAdimpletiContractus Latin exceptionofanon performedcontract Exceptiononadimpleticontractus therighttorefusetoperformone sobligationsunderareciprocalcontractunlessoruntiltheotherpartydosso Noperformanceisduetoonewhohasnothimselfperformed Clausularebussicstantibus Latin thingsthusstanding Itisalegaldoctrineinpublicinternationallawwhichallowstreatiestobecomeinapplicablebecauseofafundamentalchangeofcircumstances Thisisanexceptiontothegeneralruleofpactasuntservanda promisesmustbekept Clausularebussicstantibusdoesnotapplyifthepartiestoacontracthadcontemplatedfortheoccurrenceofthechangedcircumstance Itonlyrelatestothechangedcircumstancesthatwerenevercontemplatedbytheparties 2020 3 6 5 Contractlaw Introduction 3 1 1DefinitionofContract p68 Anagreementmadebetweentwoormorepersons withtheintentionofcreatingcertainlegalrightsandduties whichisenforceableatlaw 2020 3 6 6 Contractlaw Introduction Contract 合同 agreement 协议 tobedistinguished strictlyspeaking contractisacombinationofagreementsandothercompulsoryrequirementsbycontractlaw noteveryagreementleadstoalegalcontract butacontractmustcontainalegallyenforceableagreement 2020 3 6 7 Contractlaw Introduction FormationofContracts 3 1 2 SourcesofCommercialContractLaw3 1 2 1Domestic3 1 2 2Internationalconvention3 1 2 3InternationalpracticeaboutcontractsP713 1 4GeneralPrinciplesofInt lCommercialContractsP72 2020 3 6 9 Contractlaw Introduction ContractsUnderSeal alsoknownasDeeds mustbecompletedinaparticularway form inordertobevalid i einwriting signedbybothparties Witnessed Sealed 2020 3 6 10 Chapter6 Contractlaw Introduction SimpleContracts 简式合同 Notrequiredtobeinanyparticularformbutarerequiredtohaveconsideration 对价 simplecontractcouldbemadeeitherexpresslyorimpliedly orallyorwritingform Therearestatuteswhichrequiresomesimplecontractstobeinwriting eg contractofrealestatesorevidencedinwritingeg billoflading 提单 2020 3 6 11 Contractlaw Introduction Avoidablecontract Unenforceablecontract Voidcontract IllegalcontractAvoidablecontract 可撤销合同 remainsvaliduntilrepudiatedbyapartyUnenforceablecontract 不可强制执行的合同 validonitsfacebutnolegalactioncanbebroughtonit eg Contractneedstobeevidencedinwriting butnoevidencecouldbepresented 2020 3 6 12 Contractlaw Introduction Voidcontract 无效合同 nolegalrightsandduties VoidcontractisofcivilnaturerelatingtoextremeunfairnessIllegalcontract 非法合同 itcontravenesastatuteandthentreatedasbeingvoidsotherearenolegalrightsandduties Illegalcontractisofcriminalnaturesuchasrobbingabankwithafriend 2020 3 6 13 Contractlaw Introduction ExpressContractandImpliedContractExpressContract 明示合同 Termsofthecontractexpresslyagreeduponinwriting orallyorcombinationofboth ImpliedContract 默示合同 contractreachedthroughactsorconductsofbothparties notthroughwritingorwords 2020 3 6 14 Essentialelementsofavalidcontract Intentiontocreatelegalrelations 订约意图 OfferandAcceptance anagreement 协议 Consideration 合同须有对价 Capacityoftheparties 合同当事人须有订约能力 GenuineconsentbythepartiesorCertaintyofterms 当事人订约意图真实或合同条款真实 Legalityofobject purpose 合同标的或目的合法 Inordertocreateavalidsimplecontract certainessentialelementsmustbepresent 2020 3 6 15 Contractlaw Intention step1 2020 3 6 16 Intentionofthepartiestocreatelegalrelations Thepartiesmusthaveintendedtoenterintoalegallybindingagreement 2typesofagreements Family domesticorsocialagreements Businessorcommercialagreements 2020 3 6 17 Intentionofthepartiestocreatelegalrelations Twopresumptions 推定 aboutlegalintention Presumptionone itispresumedthatpartiestoanagreementofafamily domesticorsocialdonotintendtobelegallyboundeg CohenvCohen 1929 2020 3 6 18 Intentionofthepartiestocreatelegalrelations domesticagreement exampleCohenvCohen 1929 husbandpromisedtowifedressallowancebeforethemarriage butaftermarriage paymentsfellintoarrearsandwhencoupleseparatedMrsCohensuedforthatsum courtheld thiswasanordinarydomesticagreement nointention plaintiffwasunsuccessfulinherclaimforbreachofcontract 2020 3 6 19 Intentionofthepartiestocreatelegalrelations Twopresumptionsaboutlegalintention Presumptiontwo itispresumedthatpartiestoanagreementconcerningcommerceorbusinessintendtobelegallybound 2020 3 6 20 Intentionofthepartiestocreatelegalrelations Rebuttal 推翻推定 Eitherofthepresumptionscanberebutted changed whensomethinghappens Eg ToddvNicol 1957 Eg Rose FrankCo vJ R Crompton BrosLtd 1923 2KB261 HonorClauses 2020 3 6 21 ToddvNicol 1957 arebuttaltothepresumptionthatfamilyagreementsarenotcontracts Facts plaintiffswerepromisedahousebythedefendantiftheyleftScotlandtojoinherinAdelaide Thedefendantbrokeherpromiseaftertheplaintiffswenttogreatexpense Courtheld thepresumptioncouldberebuttedinthecircumstancesduetotheseriousnatureofthefinancialconsequencesinvolved 2020 3 6 22 HonorClausesarebuttaltothepresumptionthatbusinessagreementsareintendedtobebindingthemeaningof HonorClauses areclausesthatdemonstratethepartiestothecontractdonothaveintentiontobelegallyboundintheircontractmade exampleofhonorclause thisagreementisnotenteredinto asaformalorlegalagreement butitisonlyadefiniterecordofthepurposeandintentionoftheparties towhichtheyeachhonorablypledgethemselves thatwillbecarriedthrough withmutualloyaltyandfriendlycooperation Rose FrankCo vJ R Crompton BrosLtd 1923 2KB261 2020 3 6 23 HonorClauses thelegaleffect 法律后果 ofhonorclause Contractcontainingan honorclause isnotlegallyeffective Thecontractisactuallyregardedashonorableagreement whichhasnoanylegalbindingforceupontheparties althoughthecontractfunctionstopromotebothpartiestocarryitoutmorally Therefore honorclause incontractrebutsthepresumptionthatagreementsofabusinessnatureareintendedtobebinding 2020 3 6 24 IntentionofthepartiestocreatelegalrelationsSummary Presumptionone anagreementofafamily domesticorsocialdoesnotintendtobelegallybound itisnotacontract Rebuttal whenseriousfinancialconsequenceswereinvolvedinit itisacontract Presumptiontwo anagreementconcerningcommerceorbusinessintendstobelegallybound itisacontract Rebuttal whenabusinessagreementcontained honorclauses itisnotacontract 2020 3 6 25 Contractlaw IntroductionContractlaw Intention step1 END 2020 3 6 26 OFFER DEFINITION Anoffer 要约 isadefiniteproposal madewiththeintentionthatitwillbecomeBINDINGonthepersonmakingit assoonasitisaccepted OFFEROR 要约人 personmakingtheofferOFFEREE 受要约人 persontowhomtheofferismade iftheoffereeacceptstheofferhewillbecomeaccepter 承诺人 2020 3 6 27 Astatementforsale Wewouldliketoplaceanorderwithyouforthistypeofsteel totaling100tonsattoday smarketpriceofLondonMetalExchange othertermsasperouragreementmadebefore Thisofferissubjecttoyouracceptancebyfax reachingusbeforeApril10th Question Isthisanoffer 2020 3 6 28 Contractlaw agreement step2 Offerrules 8 3RulesrelatingtoofferTheoffermustbecommunicatedtotheofferee 2 Anoffermaybemadetoanindividual agroupofpeople ortheworldatlarge SeeCarlillvCarbolicSmokeBallCo 1893 nextslides 2020 3 6 29 CarlillvCarbolicSmokeBallCo 1893 Thedefendants Carbolic advertisedtheirsmokeballsuggestingthatanyonewhobecameillwithinfluenzaafterusingitwouldberewardedwith100pounds Theyclaimedintheadvertisementthatthepromotionwasgenuinesincetheyhadplaced1000poundsinthebanktopayanyoneoutifnecessary MrsCarlillusedthesmokeball becameillandsuedforthereward 2020 3 6 30 CarlillvCarbolicSmokeBallCo 1893 Courtheld theofferwasmadetotheworldatlarge generalpublic andanypersonreadingtheadvertisementwouldhavetakenitasafirmoffer bindingifaccepted 2020 3 6 31 Contractlaw agreement step2 Offer rules 3 Thetermsoftheoffermustbeclearanddefinite 4 anoffercanbekeptopentogiveanoffereeaperiodoftimetoconsiderit 5 request supplyofinformationisnotanoffersee HarveyvFacey 1893 nextslides 2020 3 6 32 Contractlaw agreement step2 Offer requestforfurtherinformation Harveyv Facey 1893 plaintiffsaskeddefendantshowmuchtheywouldlikefortheirproperty thedefendantsreplieddescribinglowestpossibleprice PlaintiffstookthistobeanofferandsuedwhendefendantssaidtheydidnotwanttosellCourtheld Defendants replywasmerelyasupplyofinformationnotanoffer 2020 3 6 33 Contractlaw agreement step2 InvitationstoTreat ITT 6 AnoffermustbedistinguishedfromaninvitationtotreatAninvitationtotreat ITT isastatementtoothersinvitingthemtomakeanoffer Examplesofinvitationstotreateg announcementforauction 拍卖公告 notice biddinginauction拍卖叫价 eg noticeoftender 招标公告 2020 3 6 34 Contractlaw agreement step2 InvitationstoTreat ITT eg Goodsondisplay 陈列在货架上的商品 priceattachedtogoodsisnotanoffer itisaninducementtocustomerstoconsiderbuyingtheproduct 2020 3 6 35 Contractlaw agreement step2 InvitationstoTreat ITT GoldBlend 麦氏咖啡 Howperfect Mythreefavouritethings Whichare Softcandlelight It smoreromantic Goldblend Theonlycoffeetoserve Andlast last Yourundividedattention eg advertisements 商业广告 Generallyspeaking advertisementsareITT theyarenotthefirmoffer theyjustwanttoinducethecustomerstomakeanoffertothem 2020 3 6 37 Contractlaw agreement step2 InvitationstoTreat ITT ThepresumptionsregardingsituationswhicharegenerallyconsideredtobeITTscanberebuttedbyusinganobjectivetest lookingatthefactsofanindividualcase 2020 3 6 38 Contractlaw agreement step2 ITT REBUTTAL TEST TESTofDetermininganinvitationtotreatWhetherareasonableandimpartialbystanderwouldconsider inalltheexternalcircumstances isthatthemakerofthestatementintendedtobeboundbythetermsofhisstatementifitwereacceptedorthatwhetherhewouldsaythatitwasmerelymadeasaninducementtotheentryintonegotiationsonthematter seeCarlillvCarbolicSmokeBallCo 1893 1QB256 2020 3 6 39 CarlillvCarbolicSmokeBallCo 1893 arebuttaltothepresumptionthatadvertisementisanITT Thedefendants Carbolic advertisedtheirsmokeballsuggestingthatanyonewhobecameillwithinfluenzaafterusingitwouldberewardedwith100pounds Theyclaimedintheadvertisementthatthepromotionwasgenuinesincetheyhadplaced1000poundsinthebanktopayanyoneoutifnecessary MrsCarlillusedthesmokeball becameillandsuedforthereward 2020 3 6 40 CarlillvCarbolicSmokeBallCo 1893 Courtheld theofferwasmadetotheworldatlarge generalpublic andanypersonreadingtheadvertisementwouldhavetakenitasafirmoffer bindingifacceptedThiscaseleadstotheclassificationofordinaryadvertisementandrewardforthepublic 悬赏广告 2020 3 6 41 Rewardforthepublic 悬赏广告 Whenanadvertisementoffersarewardforinformationthatmightleadtothearrestofacriminalorforthereturnofalostarticle itisregardedasgeneraloffertothepublicatlarge Acceptanceofapublicofferbyanyone asindicatedbytheperformanceoftheact resultsinanenforceablecontract 2020 3 6 42 Anexampleofrewardforthepublic Mybook internationalbusinesslaw waslosttwodaysago AnyonewhofounditcouldgetRMB50asarewardifhe she returnedittome PleasecontactmebMaryApril4th 2011 2020 3 6 43 Contractlaw agreement step2 ITT REBUTTAL ThepresumptionsregardingsituationswhicharegenerallyconsideredtobeITTs announcementforauction noticeoftender goodsondisplay advertisements canberebuttedbyusinganobjectivetest lookingatthefactsofanindividualcase 2020 3 6 44 Contractlaw agreement step2 ITT REBUTTAL TEST AutomaticsellingmachineisarebuttaltothepresumptionthatthegoodsondisplayareITTAutomaticsellingmachinemakestheofferbypresentingtheirgoodsondisplaytothepotentialbuyer Whenthebuyeracceptstheofferbyputtingmoneyintothemachine contractiscompletedwhengoodsrollsout 2020 3 6 45 ShortsummaryofofferandITT AnITTisaparty sintentiontoinvitetheotherpartytomakeanoffer Eg 1 ordinaryadvertisement 2 goodsondisplay 一般货物陈列 3 announcementforauction Anofferisaparty sintentiontoenterintoacontractwiththeotherparty Eg 1 reward 悬赏广告 2 automaticsellingmachine 自动售货机 3 biddinginauction 2020 3 6 46 Reconsiderationoftheexampleofastatementforsale wewouldliketoplaceanorderwithyouforthistypeofsteel totaling1000tonsattoday spriceofLondonMetalExchange othertermsasperouragreementmadebefore Thisorderisopenforyouracceptancebyfax reachingusbeforeMay10thourtime Question isthisanoffer Why 2020 3 6 47 considerationofthechangedexampleofastatementforsale wewouldliketoplaceanorderwithyouforthistypeofsteel totaling1000tonsattoday spriceofLondonMetalExchange othertermsasperouragreementmadebefore Thisorderisopenforyouracceptancebyfax reachingusbeforeMay10thourtime Youracceptanceissubjecttoourfinalconfirmation Question isthisanoffer Why 2020 3 6 48 Contractlaw agreement step2 end 2020 3 6 49 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement AcceptanceP80 ACCEPTANCE DEFINITIONAcceptanceisafinalexpressionofassenttothetermsofanoffer Acceptanceconvertsapromisebyanofferorintoanagreement 2020 3 6 50 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance RulesofAcceptance 1 Onlytheoffereeoritsauthorizedagentcanaccepttheoffer 2 Acceptancemustbecommunicatedsee communicationofacceptance 2020 3 6 51 Agreement Acceptance RulesCommunication Point1 communicationoftheacceptancecouldbeexpressedbywriting words conduct Point2 Generally the acceptance isineffectiveuntilithasbeenreceivedbytheofferor Eg silenceisnotacceptanceSeenextslide FelthousevBindley 1862 Communication refertorule 4 2020 3 6 52 STEP2 AGREEMENTBETWEENTHEPARTIESAcceptance communication Felthousev Bindley 1862 Felthousewrotetonephewofferingtobuyahorse IntheletterFelthousetoldhisnephewthatifhedidnotgetaresponsehewouldconsidertheofferaccepted Courtheld nephew sacceptancehadnotbeencommunicated thereforehorsedidnotbelongtoFelthouse 2020 3 6 53 Point3 Exceptionally Acceptancebypost 投邮 letter telegram becomeseffectiveoncetheacceptanceisposted regardlessofwhethertheacceptanceisdelayedorlostinthepostalsystem Thisisforcommon lawcountries Whatistheruleincivil lawcountries seenextslide AdamsvLindsell 1818 STEP2 AGREEMENTBETWEENTHEPARTIEScommunication ThePostalRule 2020 3 6 54 STEP2 AGREEMENTBETWEENTHEPARTIESAcceptance Postalrule Adamsv Lindsell 1818 Defendantsentalettertoplaintiffsofferingtosellwoolandrequiredaresponsebypost Theofferwasdelayedinthemailbuteventuallyreceived Plaintiffspostedanacceptancebutdefendantshadalreadysoldthewooltosomeoneelsebeforehereceivedtheacceptance Courtheld acceptancetookplaceattheexactmomentwhentheletterofacceptancewaspostedandthedefendantswereliable 2020 3 6 55 ThePostalRule 2020 3 6 56 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance RulesofAcceptance 3 Acceptancemustbeinresponsetoandinrelianceofanoffer refertorule 3 See RvClarke 1972 40CLR227Clarkehadbeenarrestedonamurdercharge Hegaveinformationtopolicewhichledtoaconvictionoftheactualoffendersandthentriedtoclaimarewardtothepublic 悬赏广告 2020 3 6 57 STEP2 AGREEMENTBETWEENTHEPARTIESAcceptance inrelianceofoffer Courtheld Clarkewasnotentitledtoclaimrewardbecausehisacceptancewasnotbasedontherewardtothepublicbutonthedesiretoclearhimselfofthecharge 2020 3 6 58 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance rules RulesofAcceptance 4 Acceptancemustbemadestrictlyinaccordancewiththetermsoftheoffercounter offer 反要约 modeofacceptance 承诺方式 2020 3 6 59 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptancecounter offer Acceptancemustbeunqualified 接受必须无条件 Counteroffer 反要约 Occurswhenanewtermisintroducedintotheoriginaloffer puttingforwardanalternativenewofferplaysaroletorejecttheoriginalofferandthentomakeanewoffer seenextslide HydevWrench 1840 3Beav 334 2020 3 6 60 STEP2 AGREEMENTBETWEENTHEPARTIESCounteroffer HydevWrench 1840 WrenchofferedtosellpropertytoHydefor 1000 Hydemadeanofferfor 950 counteroffer Hydenowbecameofferor Wrenchrefusedthisnewoffer henowbecametheofferee Hydetriedtoaccepttheoriginalofferof 1000 Courtheld nocontract becausecounteroffercancelsoriginaloffer andthenmakesanewoffer 2020 3 6 61 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance rules RulesofAcceptance 4 Acceptancemustbemadestrictlyinaccordancewiththetermsoftheofferoffermayprescribethemodeofacceptance forinstance pleasereplybymail byfax byemail see modeofacceptance 承诺方式 2020 3 6 62 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance Mode Ifanofferorprescribesamodeofacceptanceastheonlymodeofacceptancethenitmustbefollowed Eg Pleasereplybyletter Ifanofferorprescribesamodeofacceptancebutdoesnotspecifyitastheonlymodethenacceptancecanbemadebyanyothermodeifitprovestobequickerorequallyasquickasthemoderequested Eg pleasereplybyanyquickestwayinadditiontoletter Ifnomodeofacceptanceisprescribed itmaybecommunicatedthesamewayastheofferwasmade Eg Pleasereplyassoonaspossible 2020 3 6 63 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance rules 5 Acceptancemustbemadewithinthetimespecifiedor ifnotspecified withinareasonabletime 6 Acceptancemustbeclearandcertain Thisrulemeans acceptancemustnotbeconditional 2020 3 6 64 STEP2 AGREEMENTBETWEENTHEPARTIESAgreement Acceptance rulesconditional ConditionalAcceptance 有条件的承诺 Aconditionalacceptanceisnotaneffectiveacceptanceunlesstheofferoragreestothecondition Oneexampleofthisruleismadewithwording subjecttosomereservation 遵从保留条件 seenextslide MastersvCameron 1954 91CLR353 2020 3 6 65 STEP2 AGREEMENTBETWEENTHEPARTIESConditionalAcceptance MastersvCameron 1954 MastersagreedtobuyCameron sfarmsubjecttoobtainingadvicefromsolicitorsMasterswithdrewfromtheagreement Courtheld contractwasnotenforceablebecauseitwasnotinitsfinalform 2020 3 6 66 STEP2 AGREEMENTBETWEENTHEPARTIES offeree sOptionstoanoffer1 ifoffereeacceptstheoffer agreementforms 2 ifoffereerequestsforfurtherinformation therewillbenoacceptancebutanITT 3 Ifoffereerejectstheoffer theofferends 4 Ifoffereemakesacounteroffer 反要约 originalofferterminated newofferoccurs 2020 3 6 67 STEP2 AGREEMENTBETWEENTHEPARTIESTerminationofanoffer tobecontinued LapseoftimeDeathoftheofferororofferee 3 Withdrawalofanoffer 撤回要约 4 Revocationofanoffer 撤销要约 2020 3 6 68 ThedifferencebetweenWithdrawalandRevocation Withdrawal 撤回 ofoffermustbemadebeforeitiscommunicatedtotheofferee Revocation 撤销 ofanoffermustbemadebeforeitisaccepted Therevocationofoffermustbecommunicated receivedtotheofferee see Byrne CovLeonVanTienhoven Co 1880 5CPD344 nextslide 2020 3 6 69 Byrne CovLeonVanTienhoven Co 1880 5CPD344 Facts on1stOctVanTienhovenpostedletterofferinggoodsforsaletoByrne Byrnereceivedtheletteron11Octandacceptedbytelegramsameday On8OctVanTienhovenpostedlettercancellingtheofferwhichre

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