Legal Environment

Содержание

1. Legal Environment
2. Learning ObjectivesQuick ReviewDefinition of a ContractSimple Contracts
3. Quick ReviewIn our first class, we saw
4. Quick Review (cont.)Private Law deals with the
5. Quick Review (cont.)Civil law deals with the
6. Definition of a contractA legally binding agreementthat
7. Definition of a contract (cont.)To decide if
8. Simple ContractsThere is no general rule in
9. Simple Contracts (cont.)Although there is no requirement
10. DeedsDeeds are kind of contract which must
11. Contracts which must be in WritingSome contracts
12. Legal EffectAs we mentioned earlier, contracts are
13. Valid ContractsThese are agreements which are completely
14. Void ContractsIn fact, these are not contracts
15. Void Contracts - ExampleKeith gives his students
16. Void Contracts – Example (cont.)However, the Russian
17. Voidable ContractsThis kind of contract is valid
18. Voidable Contracts - ExampleKeith pays for a
19. Voidable Contracts – Example (cont.)If the travel
20. Voidable Contracts – Example (cont.)So the contract
21. Unenforceable ContractsThese are agreements which are legal
22. Why have a Law of Contract?As we
23. Why have a Law of Contract?The Law
24. Summarya contract is a legally binding agreementsimple
25. Summary (cont.)Business is an important part of
26. ReadingChapter 4page 104 section 4.2 first paragraphpages 104-7 section 4.3 – 4.4page 109 chapter summary
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Learning ObjectivesQuick ReviewDefinition of a ContractSimple Contracts and Written ContractsLegal Effect of ContractsWhy we have a Law of Contract

Слайды и текст этой презентации

Слайд 1Legal Environment
Contract 1
What is a contract?

Слайд 2Learning Objectives
Quick Review
Definition of a Contract
Simple Contracts and Written Contracts
Legal

Effect of Contracts
Why we have a Law of Contract

Learning ObjectivesQuick ReviewDefinition of a ContractSimple Contracts and Written ContractsLegal Effect of ContractsWhy we have a Law

Слайд 3Quick Review
In our first class, we saw that you can

divide law into different categories
Some of those categories were
private law

v. public law
civil law v. criminal law

Quick ReviewIn our first class, we saw that you can divide law into different categoriesSome of those

Слайд 4Quick Review (cont.)
Private Law deals with the relationships between ordinary

people in everyday transactions
That includes you and me, as well

as businesses and companies
Private Law includes the law of contract and the law of tort

Quick Review (cont.)Private Law deals with the relationships between ordinary people in everyday transactionsThat includes you and

Слайд 5Quick Review (cont.)
Civil law deals with the relationships between individual

citizens
Its purpose is to settle arguments between individuals
It helps people

to find remedies or solutions
it doesn’t really punish people
Civil Law includes all Private Law so it includes the Law of Contract

Quick Review (cont.)Civil law deals with the relationships between individual citizensIts purpose is to settle arguments between

Слайд 6Definition of a contract
A legally binding agreement
that means there must

be some kind of agreement between two parties
However, not all

agreements are contracts because not all agreements are legally enforceable
legally enforceable means that a court will say that an agreement is a contract

Definition of a contractA legally binding agreementthat means there must be some kind of agreement between two

Слайд 7Definition of a contract (cont.)
To decide if an agreement is

legally enforceable as a contract, a court will apply the

rules and principles of the law of contract
Therefore, knowing a little about these rules can help businesspeople to create valid contracts

Definition of a contract (cont.)To decide if an agreement is legally enforceable as a contract, a court

Слайд 8Simple Contracts
There is no general rule in English law that

a contract must be in writing
In fact, as we saw

from our examples at the beginning of the class, in many situations people do not realise that they are making a contract
Some contract can be made verbally or by actions
These are known as parol or simple contracts

Simple ContractsThere is no general rule in English law that a contract must be in writingIn fact,

Слайд 9Simple Contracts (cont.)
Although there is no requirement for a simple

contract to be in writing, sometimes the parties might record

the contract in writing
This can be useful later if there is disagreement about the contract
If the contract is important or involves a lot of money it might be wise to put it in writing

Simple Contracts (cont.)Although there is no requirement for a simple contract to be in writing, sometimes the

Слайд 10Deeds
Deeds are kind of contract which must always be in

writing
Conveyances of land: this is the legal process of transferring

the ownership of land from one party to another
This is different from the agreement to sell the land
The conveyance follows the agreement to sell

DeedsDeeds are kind of contract which must always be in writingConveyances of land: this is the legal

Слайд 11Contracts which must be in Writing
Some contracts must be in

writing but they don’t have to be by deed
Most of

these requirements come from Statute
Some examples
bills of exchange
contracts for the sale of land

Contracts which must be in WritingSome contracts must be in writing but they don’t have to be

Слайд 12Legal Effect
As we mentioned earlier, contracts are agreements, but not

all agreements are legally enforceable contracts
In fact, the legal effect

of agreements fall into 4 categories
Valid contracts
Void contracts
Voidable contracts
Unenforceable contracts

Legal EffectAs we mentioned earlier, contracts are agreements, but not all agreements are legally enforceable contractsIn fact,

Слайд 13Valid Contracts
These are agreements which are completely binding and enforceable
Parties

to valid contracts gain rights and responsibilities
The courts will make

sure that the parties follow these rights and responsibilities if there is any argument

Valid ContractsThese are agreements which are completely binding and enforceableParties to valid contracts gain rights and responsibilitiesThe

Слайд 14Void Contracts
In fact, these are not contracts at all
They have

no legal effect
As we will see in later classes, there

are a number of things which can make a contract void
eg mistake, illegality
The important thing to remember is that you cannot enforce a void contract

Void ContractsIn fact, these are not contracts at allThey have no legal effectAs we will see in

Слайд 15Void Contracts - Example
Keith gives his students so much homework

that they decide to kill him

The students pay a Russian

hitman 5000 RMB to kill Keith

Void Contracts - ExampleKeith gives his students so much homework that they decide to kill himThe students

Слайд 16Void Contracts – Example (cont.)
However, the Russian simply spends all

the money in bars in Sanlitun and then goes home
He

does not kill Keith

The students cannot claim their money back because it is illegal to hire a hitman to kill someone. Their contract with him is void.

Void Contracts – Example (cont.)However, the Russian simply spends all the money in bars in Sanlitun and

Слайд 17Voidable Contracts
This kind of contract is valid unless one of

the parties has it set aside (ie declared void)
This could

happen where one party is tricked into entering a contract by the other party

Voidable ContractsThis kind of contract is valid unless one of the parties has it set aside (ie

Слайд 18Voidable Contracts - Example
Keith pays for a holiday in Yunnan

province because the travel service shows him pictures of a

lovely 5 star hotel in Li Jiang
However, when he arrives, Keith finds that the hotel is still being constructed.
There is a room where he can stay, but not all the facilities are available and the hotel certainly doesn’t look like the pictures

Voidable Contracts - ExampleKeith pays for a holiday in Yunnan province because the travel service shows him

Слайд 19Voidable Contracts – Example (cont.)
If the travel company knew about

the hotel, then they have made a misrepresentation to Keith

which made him enter into the contract for the holiday
Keith could now choose to set aside the contract (ie make it void)
However, he could decide that things are not too bad and that he can still have a good holiday

Voidable Contracts – Example (cont.)If the travel company knew about the hotel, then they have made a

Слайд 20Voidable Contracts – Example (cont.)
So the contract is not automatically

void (like with the hitman), it is voidable at Keith’s

choice

Voidable Contracts – Example (cont.)So the contract is not automatically void (like with the hitman), it is

Слайд 21Unenforceable Contracts
These are agreements which are legal but which cannot

be enforced in court for some reason
For example, a time

limit for enforcing the contract may have expired

Unenforceable ContractsThese are agreements which are legal but which cannot be enforced in court for some reasonFor

Слайд 22Why have a Law of Contract?
As we saw from the

examples at the beginning of the class, contracts arise in

simple, everyday situations
Modern society operates by people and companies exchanging goods and services
The Law of Contract helps to give a structure to this

Why have a Law of Contract?As we saw from the examples at the beginning of the class,

Слайд 23Why have a Law of Contract?
The Law of Contract is

part of Private Law so it is concerned with relationships

between parties
It helps us to decide what is a valid contract
The Law of Contract is also part of Civil Law so it is also concerned with remedies
It helps us the other party to a contract does not keep to the agreement