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Unit 7: Formation of contracts - Coggle Diagram
Unit 7: Formation of contracts
French legal system: legal requirements for validity
Consent of the Parties
Offer
Must include the essential elements of the envisaged contract; otherwise, it is an invitation to treat (see Article 1114 C.C.)
May be withdrawn as long as it is not reached the person to whom it was addressed (see Article 1115 C.C.)
It cannot be withdrawn before the period fixed by the offeror has expired (if there is no time limit, before a "reasonable" time)
If the offer is withdrawn before the time limit, or within a reasonable period of time, the contract is not concluded, but the offeror can be liable (extra-contractual liability)
However, in this case the offeror has no obligation to compensate for the loss of profits which were expected from the contract (see Article 1116 C.C.)
Acceptance
is the manifestation of the will of the offeree to be bound on the terms of the offer
Silence does not constitute acceptance, except if it is otherwise provided by law, usage, the commercial practices, or other particular circumstances
Acceptance may be inferred by unequivocal conduct
Acceptance is valid when it is received by the offeror
The metting of an offer and an acceptance, i.e., the "meeting of the minds" (a mutual assent by all parties to the information of a contract)
Capacity of the Parties (natural and legal persons)
Refers to a person's legal ability to enter into a contract
Natural persons
Can coclude a contract
Exceptions provided by laws
Non-emancipated minor
Persons of unsound mind
Vulnerable adults under protection and administrative supervision, of a Court
Interdiction to conclude a contract
Legal persons
They can conclude a contract within the limits of their object
Lawful and Certain Content
Lawful content
The object of the contract is not against the public order
Certain content
Existence of the performance: the obligation concerns a present or future benefit
determination of the performance : the benefits should be possible, determined or determinable
UK legal system: legal requirements for validity
Offer (v. invitation to treat)
Offer
Is an expression of willingness to contract on specified terms, made with the intention that it is to become binding soon as it is accepted by the person to whoù it is addressed
Invitation to treat
Is a preliminary statement expressing a willingness to receive offers. In other words, it is a statement made by a party inviting offers which that party is then free to accept or reject.
Acceptance
Is a final and unqualified expression of assent to the terms of an offer. It must correspond exaclty with the offer made. It must be unequivocal and unconditional
Intention to create legal obligations
In order to prevent the courts from being troubled by disputes concerning agreements that are not intended to be legally binding, the courts have sought to distinguish agreements that should be legally enforceable from those that should not
Social and domestic agreements
Husbands and wives
Parents and children
Consideration
A promise is not contractually binding unless it is either made in a deed or supported by some consideration
A person to whom a promise is made (the promisee) has to give some consideration in order to render the otherwise gratuitous promise made in their favour into a legally binding contractual agreement