Business law midterm

 What precedes the formation of any contract?

Trust and negotiation

 Explain the terms of rights and obligations in contract law.

Rights are what a party can ask for and claim.

Obligations are what the parties are expected to perform or deliver as stated in the contract.

How is legal capacity defined in contract law, and why is it required for a valid contract?

legal capacity means that both parties are at the age where they mentally understand what the agreements are in the contract. it is required so both parties understand that they are getting into a legally binding agreement.

Explain the principle of Extraterritoriality of the US law.

It means that the US law can be applied even outside the
US territory.

When will a business contract qualify to be international?

A business contract is qualified to be international is when there is more than one country involved.

What's the difference between civil law and common law?

Civil Law: it is a less flexible law meaning that the judges need to base their decisions on the written code.

Common law: a more flexible law meaning that the judges can decide on their own without following a specific code.

 Cite and explain some forms of international licensing of intellectual property.

Patent licence: the right to use inventions.

Copyright licence: the right to use music, software, or books.

Trademark licence: the right to use brand names or logos.

Franchise: the right to open a new brand, company or store in other places while having the legal opportunity to do so.

Explain the principle of Autonomy of the will.

Both parties have the free will to decide if they want to join a contract or not. so, if they do not agree on the terms they have the ability to not sign the contract.

Explain the principle of tacit renewal of contracts.

tacit renewal of contract means that the contract is automatically renewed if none of the parties decide to cancel it before the end date.

What's the difference between express and implied contracts?

express contract: means that all the terms and conditions are clearly stated and written.

Implied contract: means that the terms are not written or stated but there is an understanding between both parties behaviour based on the situation.

 What's the difference between nominaWhat's the difference between bilateral and unilateral contracts?te and innominate contracts?

nominate: recognized by the law and has a legal name.

Innominate: It is an agreement that does not fall into any specific category in law.

What's the difference between bilateral and unilateral contracts?

Bilateral: both parties have obligations.

unilateral: only one party has obligations but the other mainly has rights.

What's a void contract?

A void contract is a contract that was not valid from the start.

What's a voidable contract?

a voidable contract is a contract that was valid at the start, but the innocent party can cancel if there is fraud or mistakes.

What is international soft law?

it refers to agreements that countries are not legally required to follow, but it acts as a guideline for countries to follow.

What are the most common issues in business contracts?

non performance: one party does nothing of what was promised in the contract.

late performance: the work was not done properly or it was after the due date.

fraud: one party lies and hides important information

What's a breach of contract?

A breach of contract happens when a party does not respect the contract. Maybe its fraud or lack of performance.

Explain how a contract may be discharged by performance.

a discharge by performance happens when both parties have fully finished their obligations meaning that every term was set and done.

Explain discharge by mutual agreement in contract law.

Meaning that the contract ends when both parties have agreed to end it, or it could mean that both parties want to change or modify the contract.

 Explain the notion of discharge of contract by impossibility of performance

The contract ends because it becomes impossible to perform but not just because it’s difficult or expensive.

What is discharge by operation of law in contract law?

A contract automatically cancels due to legal events like death or bankruptcy.

Explain the notion of discharge by non-provision of facilities.

It’s when one party is unable to perform because the other party did not give the right facilities.

Explain how a contract may be discharged due to the merger of rights.

its when the person becomes both the creditor and debitor In the same obligation.

What are the different types of damages in contract law?

Contract damages include compensatory (expectation and reliance), consequential, nominal, liquidated, punitive, and restitution damages.

What's the difference between expectation damages and consequential damages?

expectation damages cover what was expected to receive from the contract.

consequential damages are the indirect damages meaning that they are the losses caused by the breach.