Business Negotiations and Contracts

Week 44

• covenant == an agreement w/a specific promise to do or not to do something

non-competition covenant

• whereas == in contrast
• injunction == obligation
• breach == to break a boundary, to violate, to not fulfill
• rescind cancel w/ effect of being the same position as before signing the contract
• unwarranted == uncalled for, unjustified
• contention == disagreement

contentious ( adj. )

• efficacious == effective

Counter offer is interpreted as rejection of offer.

• an offer => offeror - offeree
• a lease => lessor - lessee

• statute == law/rule

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In common law legal systems, a contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them.

The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchange consideration to create "mutuality of obligation." ( Wikipedia )

Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the offeror) to another person (the offeree), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to create legal relations. ( Wikipedia )

Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action, and much more. ( Wikipedia )

• A counter offer is regarded by law to be a rejection of the original offer.
• Express contract vs. implicit contract

A third party beneficiary, in the law of contracts, is a person who may have the right to sue on a contract, despite not having originally been an active party to the contract. ( Wikipedia )

An unenforceable contract or transaction is one that is valid, but which the court will not enforce. ( Wikipedia )

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Week 45

A proper offer is:

1. Valid
2. Detailed
3. Specifically adressed

Sale of Goods legistlation and United Nations Convention on Contracts for the International Sale of Goods affect sales of goods

UNIDROIT is the International Institute for the Unification of Private Law

Week 47 - self learning for assignments

Delivery terms

• The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods. ( Wikipedia )

• Risk of loss is a term used in the law of contracts to determine which party should bear the burden of risk for damage occurring to goods after the sale has been completed, but before delivery has occurred. ( Wikipedia )

What triggers transfer of ownership and risk of loss?

1. Applicable law
2. Contract
3. Breach of contract ( breaching party is liable )
4. Delivery by common carrier other then seller ( loss of risk is transferred to buyer when delivery is completed as agreed in the contract ) ( Teacher )