Lesson 03 - Contracts

6. True or false?

1 - When a party breaches a remedy the non-breaching party is entitled to damages.

2 - Breach is the form of discharge anticipated when the parties make a contract.

3 - A bilateral contract is discharged when one party performs his/her part and the other waives his/her obligations.

4 - Accord and satisfaction means that one of the parties is replaced by another who assumes the original obligations

5 - Frustration is a mutual agreement not to proceed with the performance of a contract.

6 - When a debt or contractual obligation is statute-barred, the creditor cannot sue the debtor to recover.

7 - Liquidated damages are the amount of money specified in a provision of a contract should one of the parties default on his/her obligations.

(Source: Chromá M., New Introduction to Legal English I, Karolinum Press, 2011, p. 304)

7. Discuss the following examples and decide which terms they describe: performance of the contract, remedy of specific performance, accord and satisfaction, Force Majeure clause, limitation of action, novation, liquidated damages clause.

a) A party shall not be liable in the event of non-fulfilment of any obligation arising under this contract by the reason of acts of God, fires, floods, explosions, riots, wars, hurricane, sabotage terrorism, vandalism, accident, restraint of government, governmental acts, injunctions, labour strikes, other than those of Seller or its suppliers.

b) Alan offers to buy Molly's house and Molly accepts. Alan gives Molly the agreed amount of money, but Molly decides to keep the property and returns the money. Alan doesn’t want the money, he wants the house. Since there is no other piece of property or house exactly like Molly's, Molly would be compelled to go through with the sale.

c) Company A concludes a contract with Company Z. Company A is bought by Company AB and all its outstanding liabilities are assumed by Company AB.

d) Harry borrows £100 from Pat. Then he gets into financial problems and suggests to pay back £75 plus to give Pat his tablet. Pat agrees.

e) If the Hotel over-books, then, within 14 calendar days of the occurrence of the over-booking, the Hotel shall pay to the Customer an amount equal to 30% of the average Room Rate for each Guestroom Reservation that the Hotel is unable to accept prior to the Reservation Cut-off Date.

f) Jim agrees to sell his bike to Jane. Jane gives Jim the money and Jim gives Jane the bike.

g) John is very absent-minded. He lent his friend 10,000 CZK (they made a written agreement) and found out 12 years later that his friend had never given him the money back.

(Based on: Chromá M., New Introduction to Legal English I, Karolinum Press, 2011, p. 304)

8. EXAM PRACTICE: Translate the following phrases and collocations into Czech and English.

1 the offer may be revoked

2 seeking damages

3 a gratuitous promise

4 in compliance with the law

5 a period of time elapsed

1 dokud není smlouva uzavřena

2 fyzická či právnická osoba

3 dvoustranný právní úkon