Basics of Contract Law Flashcards class 3-5

A set of vocabulary flashcards covering the fundamental concepts of contract law, including formation, performance, remedies, specific contracts, and consumer protection based on the lecture transcript.

Contract

A binding legal relationship between two or more persons to do something, not to do something, or deliver something in future.

Contract law

The part of private law pertaining to contracts, which has high societal relevance and economic rationale focused on exchange.

Freedom of contract

The general principle and party autonomy that allows parties to decide whether to enter a contract, the terms and conditions, and how to modify or terminate it.

Contrat vaut loi

A principle expressed in Art. 1103 of the French Civil Code stating that agreements lawfully entered into take the place of the law for those who have made them.

Default rules

Rules of contract law that apply when the contracting parties have not solved an issue or decided not to deviate from the solution provided by the legislature.

Mandatory rules

Legal rules that apply even if the parties have agreed otherwise, often to protect public order or specific parties like consumers.

Meeting of the minds

The basis of a contract where parties have a real intention to enter into a binding legal relationship and reach a sufficient agreement on determined terms.

Mistake

A ground for invalidity involving a misapprehension of a fundamental characteristic of a good or essential quality of a party which caused the contract's conclusion.

Fraud

A ground for avoidance involving fraudulent misrepresentation by a party in full knowledge that the representation is false, intended to induce a mistake.

Threat / duress

A ground for avoidance where the conclusion of a contract is induced by coercion or threat of imminent and serious wrongful harm with no reasonable alternative.

Undue influence

A situation where one party is in economic distress or lacks bargaining skill and the other party takes advantage of this in a grossly unfair way for excessive benefit.

Ex tunc

The effect of retrospective invalidity after avoidance, leading to mutual restitution obligations.

Caveat emptor

The pre-contractual principle meaning "Buy with open eyes," where a person must actively gather information to take an informed transactional decision.

Culpa in contrahendo liability

Liability for loss incurred when a person suddenly and unexpectedly breaks off negotiations contrary to the duty of good faith and fair dealing.

Offer

A proposal to make a contract containing sufficiently definite terms and communicated with the intention to result in a contract if accepted.

Revocation

The act of withdrawing an offer, which is generally possible if it reaches the offeree before they have dispatched an acceptance.

Counter-offer

A modified acceptance that alters terms in a material way, which acts as a rejection of the original offer and creates a new offer.

Standard term

A contract term formulated in advance for several transactions involving different parties and which has not been individually negotiated.

Knock-out rule

A practice in conflicting standard terms where common terms form the contract, conflicting terms cancel each other out, and default rules fill the gaps.

Contra proferentem rule

An interpretation principle where terms are interpreted against the party who supplied them or had dominant influence during drafting.

Obligation of means

A type of obligation where the creditor must prove that the debtor did not make all reasonable efforts to perform.

Obligation of result

A type of obligation where damage is due if the guaranteed result is not obtained, unless the debtor can prove force majeure.

Specific performance

In the civil law family, the natural remedy that follows from a valid contract where a court can force the debtor to perform the obligation.

Termination (Remedy)

A remedy for sufficiently serious breach that brings an obligation or legal relationship to an end for the future (ex nunc).

Price reduction

A remedy where a creditor accepts a performance not conforming to the contract and reduces the price proportionately to the decrease in value.

Force majeure

An excuse for non-performance due to an impediment beyond the debtor's control that they could not reasonably be expected to avoid.

CISG

The Vienna Convention, which is a major international instrument for commercial sales contracts.

Incoterms

A set of 11 internationally recognized 3-letter standard terms defined by the ICC summarizing party obligations regarding delivery and risk.

Consumer

A natural person acting for non-professional purposes according to EU Consumer Protection Law.

Right of withdrawal

A consumer right to terminate a distance or off-premises contract during a 14-day "cooling-off period" without giving a reason.