Contract Law and Validity Conditions

Comprehensive practice flashcards on contract law validity conditions, legal capacity, defects of intent, consensus flow, form requirements, and grounds for obligation based on lecture notes.

What are the four essential conditions required for a contract to be valid?

1. Consensus between parties, 2. Correct form requirements, 3. Capacity to act, and 4. Permissible/lawful content.

On what grounds is the content of a contract considered invalid?

A contract is invalid if its content is objectively impossible, unlawful, or immoral.

What four questions constitute the method of claims used to solve legal cases?

Who wants What From whom On what legal basis?

According to the consensus flowchart shown, what outcome is reached when declarations of intent match and satisfy the principle of trust?

Normative consensus.

Based on this structure, what are the three classifications of contracts where a special form is required?

Simple written form, Qualified written form, and Public deed.

According to CO 13/14, what two elements are required for a simple written form?

A written declaration and a handwritten signature.

How do the requirements for a qualified written form and a public deed differ from a simple written form?

A qualified written form requires additional elements like handwritten declarations, while a public deed requires notarization.

What is the role of essentialia negotii in establishing contract consensus?

Essentialia negotii are the essential elements of a contract; once agreed upon, consensus is reached, and secondary elements can be added later by a court.

What is the difference between the legal effect of a contract and the legal effect of performance?

Contracts create obligation/commitment, whereas performance creates ownership.

What is tort as a ground for obligation under the law?

A civil wrong that causes harm or loss to another person, leading to legal liability for the person who caused it.

What constitutes unjust enrichment?

Receiving a benefit without any legal basis to have it, such as receiving double salary payments.

What does the legal principle of culpa in contrahendo establish?

Fault in the conclusion of a contract (pre-contractual fault), which holds a party liable for damages if they act negligently or in bad faith during preliminary contract negotiations.

How do the Swiss Civil Code (CC) and the Swiss Code of Obligations (CO) differ in scope?

The Swiss Civil Code (CC) regulates relations between individuals, families, and property, whereas the Swiss Code of Obligations (CO) governs contract law, tort liability, commercial enterprises, and business entities.

What three conditions must be satisfied for a person to have full capacity to act?

The person must be of age ($18+$), capable of good judgment, and not under the protection of adults.

What level of capacity to act does a minor who is capable of judgment possess?

Limited incapacity to act.

Which types of constructs possess legal personality, and which do not?

Constructs with legal personality include natural persons and legal entities (corporate entities like Ltd., LLC, and independent bodies like foundations). Constructs without legal personality include partnerships (simple, general, and limited partnerships).

What two conditions must be present to contest a contract on the grounds of unfair advantage?

1. A clear discrepancy between performance and counter-performance (based on market price), and 2. The exploitation of a state of weakness (such as poverty, thoughtlessness, or inexperience).

Under what circumstances is an error in declaration considered fundamental?

When the type of contract, the subject matter or person, or the scope of performance is affected.

What three requirements must be met to establish a fundamental error in motive?

1. Subjective materiality (essential to the buyer), 2. Objective materiality (reasonably important), and 3. Recognizability for the counter-party.

What is the legal rule regarding liability for negligent error under CO 26?

It imposes liability for damages on a party who contests a contract due to a negligent error.

What are the statutory time limits to contest a contract for error, fraud, and duress?

Error: within one year of discovery; Fraud: within one year of discovery of fraud; Duress: within one year of the end of the duress.

In the scenario shown in the figure, why can Daniel contest the purchase agreement he signed?

Daniel signed under duress because Lara threatened to expose an extramarital affair to his wife if he did not sell his car for CHF5,000, allowing Daniel to contest the agreement within one year of the end of the duress.