Int.B.Law - Friedrich - Past Paper PDF

Contract: A two-sided legal transaction with declarations of intent from two parties aiming for legal consequences, requiring no formalities (e.g., oral or implied agreements). One-sided legal transaction: Modifies a contract (e.g., termination, withdrawal) through one party's right and intent, ori...

Contract: A two-sided legal transaction with declarations of intent from two parties aiming for legal consequences, requiring no formalities (e.g., oral or implied agreements). One-sided legal transaction: Modifies a contract (e.g., termination, withdrawal) through one party's right and intent, originating from law or the contract itself. Major Types of contracts: Contracts: -​ Purchase -​ Work -​ Service Agreements: -​ Loan -​ Free Loan -​ Donation -​ Rental Major contract problems: Difficulty in proving agreements or amendments, interpreting content, and terminating without disputes over aftereffects. Avoid contract disputes: Write everything down (especially financial contracts) in detail, and amend written contracts only in writing, not orally. Special contracts in business: Letter of intent: Confirms negotiation status without commitment; may cause liability (e.g., reimbursement (when you ask for something back (money))). Preliminary contract: Indicates intent to finalize a contract; creates obligations and may require formalities like the final contract. Closing a contract: Offer: One-sided declaration with essentials (parties, item, price, timing). Acceptance: One-sided declaration agreeing to the offer. Consensus: Offer and acceptance must align in content. Difficulties in closing a contract: Waiver (rejection) of receipt: Acceptance may occur without explicit confirmation. Acceptance through silence: General rule: Silence is not acceptance. Exception: Commercial confirmation letter (e.g., merchant negotiation, timely and unchallenged confirmation aligns with prior negotiations). Special aspects of closing a contract: Contracting obligation: Legal duty to contract in essential areas (e.g., electricity, gas) to ensure access to infrastructure. Invitatio ad offerendum: Invitation to make an offer, not an offer itself (e.g., product catalog). Offerta ad incertas personas (people of the general): Binding offer to an undefined group (e.g., public transport). Every purchase involves two contracts: an obligation agreement and an executory agreement. Obligation agreement: -​ A sells a blue pencil to B. Result: -​ B must pay A. -​ A must deliver the pencil to B. Obligation: Creates a duty to transfer goods; an executory act completes the transfer. Executory agreement: Action: B pays A, and A delivers the pencil to B. Result: Both parties fulfill their obligations. Execution: Completes the obligations established in the obligation agreement. Principles of obligation and execution: (Not very relevant but ok) Obligation remains: A must fulfill the contract even if unable to deliver the last blue pencil. Separation principle: Obligation and execution are distinct contracts. Abstraction principle: Obligation and execution function independently. Resolution: A must find another pencil or dissolve the contract. Consequence: Obligation and execution can have separate outcomes. Benefit: Execution is independent of obligation (e.g., retention of title—ownership remains with the seller until conditions like payment are met). Issues in one transaction do not affect the other, ensuring stability in goods allocation. Breaches of contractual duties: Deficiency in supplied items: -​ Seller must repair or replace the item (buyer's choice). -​ Buyer can cancel the contract, reduce the price, or demand compensation under certain conditions. -​ Additional claims may apply if warranties with extra obligations are agreed (e.g., for technical devices or company acquisitions). Impossibility: -​ If the sold item is unavailable, the seller is exempted from the supply obligation. -​ If exempt, the buyer is also released from paying the purchase price. -​ Legal preconditions and precedents must be examined. Delay: -​ Seller's default: Fails to supply the item on time (debtor default). -​ Buyer's default: Fails to accept the item on time (default of acceptance). -​ Legal preconditions and precedents must be reviewed. Incoterms: (just in case added, idk) - (International Commercial Terms) -​ Established in 1953 by the International Chamber of Commerce, Paris. -​ Provide globally recognized trading terms. -​ Not a law; must be agreed upon to apply. -​ Allocate risks between buyer and seller (e.g., shipping or customs risks). Common examples (2020): EXW (Ex Works): Buyer picks up from seller’s location. FOB (Free on Board): Buyer collects at the port/airport of origin. DAP (Delivered at Place): Seller delivers to the buyer’s location. DDP (Delivered Duty Paid): Seller covers delivery, duties, and taxes.