39 Questions
What is the primary obligation of the seller in a contractual agreement?
To deliver the thing to the buyer and warrant against eviction and defects
What type of obligation arises from a civil wrong, such as punching someone in the face?
Delictual obligation
What type of obligation is created when one person unintentionally benefits at the expense of another?
Quasi-contractual obligation
What happens to the risk of ownership once a contract is signed and goods are transferred?
The risk falls entirely on the buyer
What is an example of a delictual obligation, according to the text?
A person's obligation to repair their neighbor's house that is collapsing
What type of obligation would arise if a trustee fails to fulfill their duties towards their beneficiaries?
Innominate obligation
What is the primary basis for quasi-contractual obligations?
The principle of preventing unjust enrichment
What is the primary purpose of contractual obligations?
To create proprietary rights between parties
What is the primary reason why comparative law is necessary in the context of national laws?
To aid the legislator in making informed decisions
What is the term for the extent of the power to make legal decisions and judgments?
Jurisdiction
What is the primary goal of the functional method in comparative law?
To reach similar results despite differing legal measures
What is the primary difference between the EU and US legal systems?
The EU has common laws, while the US has state-specific laws
What is the role of comparative law in aiding relations between countries?
To act as a tool for constructing national or international law
What is the primary benefit of comparative law in the context of European law?
It acts as a driver of European law
What is the primary step in the functional method of comparative law?
Statement of the problem in purely functional terms
What is the primary goal of teaching comparative law at universities?
To educate students about the similarities and differences between legal systems
In the Pannon case, who is responsible for examining the unfairness of a contractual term?
The national court
What is the primary aim of the law of contract?
To protect the contractual expectations of both parties
What is the effect of an anticipatory breach of contract?
The party declaring the breach is exempt from performing the contract
What is the purpose of a remedy in the law of contract?
To uphold the contractual expectations of the parties
What is the result of a specific performance remedy?
The breaching party is forced to perform the contract
What is the effect of a termination of contract remedy?
The contract is terminated, and the parties are returned to their original position
What is the purpose of damages as a remedy?
To return the non-breaching party to the same position they would have been in if the contract had been properly performed
What is the imbalance between the consumer and the seller/supplier corrected by?
A positive action unconnected with the actual parties to the contract
What is the primary focus of the economic approach to contract law?
Increasing individual welfare
What is the general remedy for breach of contract in the common law approach?
Compensation of damages
In which case would a court not order specific performance in the civil law approach?
When the debtor is unable to perform
What is the sequence of events in a typical contract agreement according to the civil law approach?
Contract à performance à discharge by performance
What is the primary difference between the civil law and common law approaches to contract law?
The priority of specific performance as a remedy
What is an exception to the availability of specific performance as a remedy in the civil law approach?
Disproportionate costs
What is the general principle of the moral approach to contract law?
Promises must be fulfilled
What is the assumption behind the assessment of damages in contract law?
The mistaken party would have bargained for better terms if correctly informed
Who can commit fraud for avoidance of contract?
The other contracting party or their agent
What is the duty of a contracting party according to the German court?
To inform the other party of unusual circumstances
What is the potential consequence of nondisclosure of decisive information?
Economic loss and damage to reputation
What type of duress involves threats to a person's economic interests?
Economic duress
What is the outcome when a contract is avoided due to fraud?
The contract is terminated, and restitution is made
In what scenario would a landlord not be obligated to inform themselves about unusual circumstances?
When the tenant has a good faith duty to inform
What is the decisive nature of the information that the tenant should have disclosed?
The intention to sell goods of the brand Thor Steinar
Study Notes
Comparative Law
- Comparative law is a branch of legal science that investigates the comparison between national laws.
- It has indirect benefits, including:
- Aiding legislators
- Constructing national or international law
- Teaching and studying at universities
- Guiding uniform laws
- Driving European law
Functionalism in Comparative Law
- Functionalism is a method that rests on three premises:
- Legal systems face similar problems
- Different legal systems take different measures to resolve the same problem
- Despite differing measures, legal systems reach similar results
- The functional method has three steps:
- Statement of the problem in purely functional terms
- Objective presentation of ways in which different legal systems resolve the problem
- Comparison and evaluation of the analysis from a purely functional perspective
Obligations
- Obligations of the seller:
- Delivering the thing to the buyer
- Warranting the buyer against eviction and defects in the thing sold
- Obligations of the buyer:
- Paying the price within the time and place fixed by the contract
Sources of Obligations
- Contractual obligations:
- Created by contracts or agreements
- Rights are generally proprietary
- Delictual obligations (arising from a tort):
- A civil wrong for which the remedy is an action for damages
- Not solely a breach of contract
- Quasi-contractual obligations:
- Not a contract entered into intentionally, but recognized by law as equitable
- One person shouldn't enrich themselves unjustly at the expense of another
- Innominate obligations:
- All other things that can happen (e.g. trustee's obligations towards beneficiaries)
Legal Effects of Contract
- In most legal systems, once you sign the contract, all risk falls onto you
- If something bad happens, it is up to you to pay or repair
- Example: Pannon case, where the national court examines the unfairness of the contractual term
Breach of Contract
- Two ways to breach a contract:
- Anticipatory breach: Declaring intention of not performing the contract before the performance is due
- Actual breach: Occurs on the due date of performance or during the course of performance
Remedies
- Protection of contractual expectations is the primary aim of law of contract
- Three types of remedies:
- Specific performance: Forcing a party to perform their obligations
- Termination of contract: Dissolving the contract and refusing to perform
- Damages: Monetary reward for breach of contract
Approaches to Contract Law
- Moral approach: Promises must be fulfilled, and the legal system imposes the fulfillment of the debtor's duty as remedy
- Economic approach: People conclude contracts to increase their welfare, and the debtor may prefer to compensate the other party financially
- Civil law approach: Specific performance is a general remedy, and exceptions include impossibility to perform and disproportionate costs
- Common law approach: Compensation of damages is the general remedy, and specific performance is exceptional
Breach of Contract in Civil Law
- Three cases of breach:
- Non-performance
- Defective performance
- Delay in performance
- Each party holds an enforceable right to claim performance from the counterparty
- Non-breaching party can ask for money instead of specific performance
Claim for Avoidance
- Avoidance is granted when fraud is committed by the other contracting party or their agent
- Example: German case, Bundesgerichtshof 11.08.2010, where the landlord claimed avoidance due to the tenant's failure to disclose their intention to sell goods of a Neo-Nazi brand
Duress
- Duress consists of threats to a would-be party's life, limb, honor, property, or economic interests
- Threats induce the party to enter into a contract to avert the danger
This quiz compares the legal systems of the European Union and the United States, focusing on jurisdiction and law-making powers. Test your knowledge of EU and US laws and their differences.
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