Unit IX

Pre-reading task

Match the verbal combinations with the word “contract” with their Ukrainian equivalents.

1. to sign a contract a) порушувати контракт

2. to conclude a contract в) виконувати контракт

3. to draw up a contract с) складати контракт

4. to execute (to perform) a contract d) підписувати контракт

5. to break a contract е) заключати контракт

6. to cancel a contract f) розривати контракт

Task 1. Read the text to understand what information is of primary importance or new for you.

Contract law

A contract is a legally binding agreement between two or more competent persons to do, or not to do, a particular thing. Three basic elements to a contract are: an offer, an acceptance of the offer, and sufficient consideration to support the offer and acceptance. In addition, there must be a reasonable certainty as to what the parties are to do, or not to do, when they are to do it, and what the consideration is. Finally, the parties must be competent to contract, that is, they must be of sufficient age, in reasonable possession of their wits, and not under legal disability.

An offer can be made by words or acts. That is, it can be made specifically (in writing or orally), or it can be implied from the conduct of the person making the offer. An offer can be made by advertisement. The person to whom an offer is directed may reject the offer. The person may also make a proposal of her own, that is, make a counteroffer. A counteroffer wipes out all previous offers.

The law requires that some contracts are made in writing. Examples of contracts to be made in writing include:

• contracts for the sale of land;

• contracts of guarantee;

• contracts for transfer of shares etc.

Sometimes a contract may be defective and may consequently be void or voidable or unenforceable.

The contract may be void if one or both parties are not recognized in law as having legal capacity to consent to a contract, for example minors under 18 or persons with certified mental incapacity.

A contract is voidable, that is, it may be cancelled, by one of the parties if there is some defect in its formation. For example, if the contract for the sale of land is not in writing one of the parties can use the defect as a means for setting the contract aside.

Some contracts may be neither void nor voidable, but can not be enforced in court of law, for example payment of a gambling debt. Lapse of time may render a contract unenforceable.

Task 2. Find in the text above the English equivalents for the following words and expressions. Memorize them. Use them in the context of your own.

Договір, що не має позовної сили, зустрічне задоволення, відхилити оферту, правоможний укладати договір, бути при своєму розумі, юридична недієздатність, розумне усвідомлення, передача акцій, психічна недієздатність, недійсний договір, оспорюваний договір, анулювати договір, завершення строку, гральний борг.

Task 3. Give the Ukrainian equivalents for:

legally binding agreement, reasonable certainty, legal disability, to reject the offer, to make a counteroffer, to expire, to wipe out all previous offers, defective contract, certified mental incapacity, set the contract aside, be enforced in court of law, payment of gambling debt.

Task 4. Answer the following questions:

1. What is a contract?

2. What are three basic elements of a contract?

3. How can an offer be made?

4. In what case may a contract be void?

5. What is a voidable contract?

6. What does “unenforceable contract” mean?

7. What agreements must be made in writing in Ukrainian jurisdiction?

Task 5. Complete the following text using the words:

an offer, an agreement, damages, loss, contract, acceptance, terms, to consider, compensation, a court, a breach, a seller, goods, to enforce, party, to reject, sale, addition, to sue, plaintiff.

English law textbooks often describe a contract as _____ made between two or more _____ and which is binding in law. The parties must agree to contract on certain _____ .

When _____ is deciding whether a contract has been made, it must consider the following principles. One principle of English _____ law is there must be offer and _____. I see an advertisement to sell a car, and I telephone the advertiser and agree to buy it, the seller is not obliged to sell it to me. This is because the law _____ that the real _____ is when I contact _____ asking to buy the car. The seller then may decide whether to accept or _____ my offer. This is the reason that a store doesn’t have to sell you _____ it displays for _____ . And there is no _____ of contract.

So another principle is there is no valid contract if one of the parties did not intend to be legally bound.

What is valuable consideration? The principle behind this phrase is that law will not _____ an empty promise.

But once the court decides that there has been a breach of contract, it must judge how the party must compensate the other party. The usual award is _____ - money _____ . In _____ to financial _____ a _____ sometimes tries to _____ for mental distress caused by the breach of contract. Such claims are less successful in Britain than in the USA, except for holiday contracts.

Task 6. Solve the problems. For each of the following situations, decide whether contract has been made. Give your reasons.

a) An auctioneer says: “What am I bidden for this antique sofa?” Someone in the crowd says: “$ 300”.

b) Adam says to Basil: “I’m going to sell my car for $ 500”. Basil replies: “All right, here is the money. I’ll take it”.

c) The citizens of a small town collect $ 1 000 and offer it as a reward for the capture of a suspected criminal. The sheriff captures the suspect and seeks the reward.

d) Sara’s father promises to pay her $ 1 000 when she turns 18. On her 18 birthday she seeks the money.

e) Standing at one end of a long bridge, Shelly says to Lynn: “I’ll give you $ 10 if you walk across the bridge. Lynn says nothing but starts walking across the bridge.

f) Liz offers Sharon $ 100 to steal 4 hubcaps for her sports car. Sharon steals the hubcaps, brings them to Liz, and asks for the money.

g) Ruth orally agreed to sell the car to Mike for $ 2 000. A few days later, she got an offer of $ 2 300 from Paul. Thereafter, she refused to sell her car to Mike. Can Mike hold her to the agreement?

Task 7. Role play. Read the cases below and decide the legal position of the plaintiff and the defendant under the law of contract.

Case 1

X advertises in the local paper that she will pay a reward to anyone who finds and returns her lost Persian cat. Y finds the cat two months later and takes her back to X, asking for reward. Meanwhile, X has bought another cat. She agrees to take her back, but refuses to pay the reward. Y sues X for the reward.

Case 2

The Superhair Company produces an expensive new product “guaranteed to make your hair grow in only 3 weeks or your money back”. The advertisement specifies that users must follow the instructions on the packet carefully. Z, who is completely bald sees the advertisement and buys the product. He uses it as instructed on the packet, but his hair does not begin to grow again. When Superhair refuses to give his money back, he sues the company.

For each case, appoint the students to act as a plaintiff, a defendant, a counsel for the plaintiff, a counsel for the defendant and a judge. Represent your arguments in turn. Deliver judgment, and decide who has won the case.

Task 8. Translate the following words and phrases. Use them to translate the text:

Contracting parties, legal and natural persons, mutual obligations, to agree with the terms of the contact, valid contract, legally capable, sane, to avoid the execution of the contract, to be legally competent, to seek legal remedies, contract of purchase and sale, to transfer property.

1. Контра́кт — це письмова угода, договір, за яким сторони, що його уклали, мають взаємні зобов'язання.

2. Cторонами договору можуть бути як юридичні, так і фізичні особи.

3. Кожен контракт має певні елементи. По-перше, це пропозиція з однієї сторони і згода з іншої. По-друге, обидві сторони мають погодитися з умовами контракту.

4. Кожен законний контракт передбачає взаємне задоволення.

5. Особи, які укладають договір, повинні бути дієздатними, тобто бути повнолітніми та при своєму розумі.

6. Під час укладання контракту ви повинні бути впевненими, що розумієте всі його пункти, інакше буде занадто пізно ухилитися від його виконання.

7. Компенсація (зустрічне задоволення) може бути у грошовій формі, у формі майна, послуги або зобов’язання здійснити певні дії.

8. Аби договір був обов’язковим для виконання, сторони мають бути правоможними укладати його.

9. Якщо одна сторона не виконує свої зобов’язання, передбачені угодою, інша сторона може шукати засоби судового захисту.

10. Договір купівлі-продажу – це договір, за яким продавець зобов"язується передати майно покупцеві, а покупець зобов"язується прийняти майно і сплатити за нього певну грошову суму.

UNIT X

Pre-reading task

Read the following words and expressions and divide them into three groups: (1) those referred to the copyright; (2) those referred to patent law; (3) those referred to trade marks.

Opera, industrial design, AUCHAN, photograph, Coca-cola, fairy tale, barometer, database, Nokia, hydrochloric acid, sculpture, computer, computer program, Sony, microwave oven, Hilton, sound recording, painting, novel, photocopier, “Hamlet”, utility model, VW.

Task 1. Read the text to understand what information is of primary importance or new for you.