Chapter 7Contract Law
Chapter 7 Contract Law
How to get to a contract?NegotiationyesAgreement?noFormationofacontractOffer&acceptanceyesnoCapacity?yesnoValidityofacontractVoluntary?No(perfect)Contract!yesnoLegality?yesnoWriting required?Contract!
Agreement? Offer & acceptance Capacity? Voluntary? Legality? Contract! No (perfect )Contract! yes yes yes yes yes no Negotiation no no no no Writing required? How to get to a contract? Formation of a contract Validity of a contract
Case:For example,assumethatAandBhave beennegotiating overthe sale ofB'srestaurant.AconfidesinhisfriendCthatheplansto offerBRMB150,000fortherestaurant.CgoestoBandtellsBthatAhasdecidedtoofferhimRMB150,000fortherestaurantandhasdrawnupawrittenoffertothateffect.AfterlearningthedetailsoftheofferfromC,BtelephonesAandsays,“Iacceptyouroffer."Question:IsAnow contractuallyobligated tobuytherestaurant?oNo.BUSINESSSeeCommunicationforSALERESTAURANT
Case: For example, assume that A and B have been negotiating over the sale of B’s restaurant. A confides in his friend C that he plans to offer B RMB150,000 for the restaurant. C goes to B and tells B that A has decided to offer him RMB150,000 for the restaurant and has drawn up a written offer to that effect. After learning the details of the offer from C, B telephones A and says, “I accept your offer.” ◦ Question: Is A now contractually obligated to buy the restaurant? ◦ No. ◦ See Communication
LearningobjectivesOncompletionofthis chapter,students shouldbeableto:Understandthe concept and significanceofa contract;Comprehendtheprocessofcontractformation;Recognizethefactors influencing thevalidity ofa contract;。Understandhowthecontractisperformed;Knowthewayshowacontractisterminated;Demonstratetheliabilityforbreachofa contract
Learning objectives On completion of this chapter, students should be able to: ◦ Understand the concept and significance of a contract; ◦ Comprehend the process of contract formation; ◦ Recognize the factors influencing the validity of a contract; ◦ Understand how the contract is performed; ◦ Know the ways how a contract is terminated; ◦ Demonstrate the liability for breach of a contract
Contents7.1IntroductiontoContracts7.2FormationofContracts7.3ValidityofContracts7.4TerminationofContracts7.5BreachofContracts
Contents 7.1 Introduction to Contracts 7.2 Formation of Contracts 7.3 Validity of Contracts 7.4 Termination of Contracts 7.5 Breach of Contracts
7.1IntroductiontoContracts7.1.1DefinitionofaContract7.1.2TheImportanceofContracts7.1.3GeneralPrinciplesof ContractLaw7.1.4ClassificationofContracts
7.1 Introduction to Contracts 7.1.1 Definition of a Contract 7.1.2 The Importance of Contracts 7.1.3 General Principles of Contract Law 7.1.4 Classification of Contracts
7.1.1 Definition of a ContractWhatisacontract?oAcontractisalegallybindingagreement betweentwoormorepartiesthatisenforceablebylaw.。This legal arrangement establishes,defines,andregulates thereciprocalrightsandresponsibilities amongtheinvolvedparties。It assumestheroleof the legal framework underpinningawidearrayofbusiness undertakings,rangingfromtheexchange ofgoods,provisionof services,andtransferof monetary assets,to commitments forfuturetransfers
7.1.1 Definition of a Contract What is a contract? ◦ A contract is a legally binding agreement between two or more parties that is enforceable by law. ◦ This legal arrangement establishes, defines, and regulates the reciprocal rights and responsibilities among the involved parties. ◦ It assumes the role of the legal framework underpinning a wide array of business undertakings, ranging from the exchange of goods, provision of services, and transfer of monetary assets, to commitments for future transfers
The subjects of contractual relationsSubjectsofacontractcouldbe:onaturalpersonslegalpersons,andoothertypesoforganizations。Today, most contracts are agreed between business entities, whilstindividuals will signbasic contractsoccasionally,suchaswhensellingproperty or acknowledging a job offer.Conversely,businessessignlegalagreementsinthemasseswithpartners,customers,andsuppliers.Contractualagreementsformthebackboneofeverycommercialrelationship
The subjects of contractual relations Subjects of a contract could be: ◦ natural persons ◦ legal persons, and ◦ other types of organizations ◦ Today, most contracts are agreed between business entities, whilst individuals will sign basic contracts occasionally, such as when selling property or acknowledging a job offer. ◦ Conversely, businesses sign legal agreements in the masses with partners, customers, and suppliers. Contractual agreements form the backbone of every commercial relationship
ChineseContractLawOldcontractlaw,1999-2020Newcontractlaw.inCivilcode.book3Thelong-expectedCivilCodeofthePeople'sRepublicofChina("CivilCode")hasbeenpassedbythe13thNationalPeople'sCongress("NPC“)onMay282020.andtookeffectonJanuary1,2021.TheCivilCodeisasweepingcollectionofexistinglawsand regulations aswell as judicialinterpretationrelatedto civil activitiesandrelations,includingbutnot limitedto propertyright,contracts,marriage and family,succession,tort,fopersonal rights.Contentsof CivilCodeofthePeople'sRepublicofChina。BookOneGeneralProvisions第一编总则。BookTwoRealRights第二编物权。BookThreeContracts第三编合同。BookFourPersonalityRights第四编人格权。BookFiveMarriageandFamily第五编婚姻家庭。BookSixSuccession第六编继承BookSevenTortLiability第七编侵权责任
Chinese Contract Law Old contract law, 1999-2020 New contract law, in Civil code, book 3 The long-expected Civil Code of the People’s Republic of China (” Civil Code “) has been passed by the 13th National People’s Congress (” NPC “) on May 28, 2020, and took effect on January 1, 2021. The Civil Code is a sweeping collection of existing laws and regulations as well as judicial interpretation related to civil activities and relations, including but not limited to property right, contracts, marriage and family, succession, tort, to personal rights. Contents of Civil Code of the People’s Republic of China ◦ Book One General Provisions 第一编 总则 ◦ Book Two Real Rights 第二编 物权 ◦ Book Three Contracts 第三编 合同 ◦ Book Four Personality Rights 第四编 人格权 ◦ Book Five Marriage and Family 第五编 婚姻家庭 ◦ Book Six Succession 第六编 继承 ◦ Book Seven Tort Liability 第七编 侵权责任
Contracts part inCivil Codeof thePeople'sRepublicof ChinaTitleTwo:Nominate ContractsBook Three: ContractsoChapterIXSalesContractsTitleOne:GeneralProvisionsChapterXContractsforSupplyofPower,Water,Gas,orHeatChapterXIGiftContractsChapterIGeneralRulesChapterXllContractsforLoanofMoneyChapterXIllContractsof Suretyship。ChapterIl ContractingChapterXIVLeasingContractsChapterll ValidityofContractsChapterXVFinancialLeasingContractsChapterXVIFactoringContracts。ChapterIVPerformanceofContractsChapterXVIIContractsforWorkChapterXVillContractsforConstructionProjectsChapterVPreservationofContractsChapterXiXTransportationContractsChapterXxTechnologyContractsChapterVIModificationandAssignmentChapterXXIDepositContractsofContractsChapterXXilWarehousingContractsChapterXxill Contractsof MandateChapterVll Termination of ContractualChapterXXIVPropertyManagementServiceContractsRightsandObligationsChapterXXVCommissionAgentContractsChapterVIllLiability forBreachofChapterXxVIIntermediaryContractsChapterXXVIIContractsofPartnershipContractTitleThree:Quasi-contractsChapterXxVIllManagementoftheBusinessofAnotherChapterXXiXUnjustEnrichment
Contracts part in Civil Code of the People’s Republic of China Book Three: Contracts Title One: General Provisions ◦ Chapter I General Rules ◦ Chapter II Contracting ◦ Chapter III Validity of Contracts ◦ Chapter IV Performance of Contracts ◦ Chapter V Preservation of Contracts ◦ Chapter VI Modification and Assignment of Contracts ◦ Chapter VII Termination of Contractual Rights and Obligations ◦ Chapter VIII Liability for Breach of Contract Title Two: Nominate Contracts ◦ Chapter IX Sales Contracts ◦ Chapter X Contracts for Supply of Power, Water, Gas, or Heat ◦ Chapter XI Gift Contracts ◦ Chapter XII Contracts for Loan of Money ◦ Chapter XIII Contracts of Suretyship ◦ Chapter XIV Leasing Contracts ◦ Chapter XV Financial Leasing Contracts ◦ Chapter XVI Factoring Contracts ◦ Chapter XVII Contracts forWork ◦ Chapter XVIII Contracts for ConstructionProjects ◦ Chapter XIX Transportation Contracts ◦ Chapter XX TechnologyContracts ◦ Chapter XXI Deposit Contracts ◦ Chapter XXII Warehousing Contracts ◦ Chapter XXIII Contracts of Mandate ◦ Chapter XXIV Property Management Service Contracts ◦ Chapter XXV CommissionAgentContracts ◦ Chapter XXVI Intermediary Contracts ◦ Chapter XXVII Contracts of Partnership Title Three: Quasi-contracts ◦ Chapter XXVIII Management of the Business of Another ◦ Chapter XXIX Unjust Enrichment