Law Midterm Summary
Basic Concept Of Law
• Private law
o Property law – ownership, mortgage
o Contract law – rules and regulations made by both parties
o Tort law – deals with compensation for damage occur when
there’s no contract
• Public law
o Constitutional law – organize the states and the government,
creation of legislation, functioning democracy (Political use)
o Criminal law – prosecution and punishment of criminals
o Administrative law – deals with many interactions between
government agents and civilians or private organization
Contract law
• Source of contract law
o A set of rules and principles that governs transactions among
parties, by setting the rights and obligations of these parties.
• Exchange
o The core of a typical contract is exchange: one party gives
something to another party and receives something in return.
This exchange is prompted by the belief of both parties that
they benefit from it
o Exchanging contract is occurring after a solicitor has carried
out all necessary searches and there is agreement to the
contract terms, once each party has signed the contracts and
they have been exchanged, they are binding.
• 3 types of rules relevant to the contract law:
o Rules that are made by contracting parties themselves.
2
▪ One of most important principle in this field is freedom
of contract. Not only parties are free to decide whether
they want to contract with whom, but they can also
determine the content of their contract. This means that
no one is obligated to enter into a contract, but if one
does, one is bound by it in the same way as if the rules
had been made by the legislature.
o Rules that emerge from the official national, European, and
supranational sources.
▪ At national level, the official contract law is primarily
produced by the legislature and the courts.
o Informal rules that are made by the others (including non-state
organizations and academics)
▪ Not officially binding but have the status of soft law. can
be a source of inspiration for parties drafting a contract.
• Formation of a binding contract
o From a promise to a binding contract.
▪ Intentionally to be legally bound
• The requirement that both parties involved in the
contract must obey the terms detailed in the
contract, as well as perform their contractual
duties as stated by the contract. Failure to do so
could likely result in legal consequences, including
but not limited to a damages award.
▪ Gratuitous promises
• A promise that cannot be enforced as a contract
because there has been no exchange of
consideration (the promise of payment or
something of value made in exchange for
performance of a contract), unenforceable in law
• Example, a used car salesman may promise to
throw in an AM-FM radio in order to get a
customer who has just purchased a car but then
had buyer’s remorse. As the salesman does not get
anything for the radio, it is a gratuitous promise
which need not be delivered.
▪ Consideration
• Requires that there is quid pro quo: a promise must
be given for a counter performance by the other
party.
▪ Unequal obligations
▪ Promise in the domestic or social sphere
• Example, if a father promises his daughter to pay
for her driving lessons if she does not smoke until
she is 18 years old, no sensible lawyer would
advise her to take her father to a court if he does
not keep his promise.
o Offer and acceptance
o Formalities and protection of the weaker party
• Article 247-1, ROC Civil code
o The agreement which include the following
