Law of contracts

Question 1

Define breach of contract

Answer 1

Any act or behavior of the obligor (seller) or obligee (buyer) that prevents or encumbers the realization of the
aim of contract or leads to any defect of the performance
• Obligor’s delay
• Obligee’s delay (late acceptance)
• Impossibility of performance
• Withholding performance (refuse to perform) § Defective performance (lack of conformity)

Question 2

Definition of defective performance

Answer 2

The goods (e.g. animal) or service does not comply with the legal characteristics or with the characteristics
stipulated in the contract and the defect existed at the time of delivery

Question 3

How to determine the significance of an infectious disease

Answer 3

Aspects:
• outcome (morbidity, mortality, losses)
• efficiency and costs of treatment
• course of disease
• control methods (specific, non-specific)
• animal health situation

Question 4

Exclusion of liability not valid

Answer 4

The exclusion is not valid:
• If caused intentionally, by serious negligence, or by crime
• The goods (animal) damages life, physical integrity, health
• There is no proper compensation

Question 5

Definition of warranty

Answer 5

Objective consequence of the defective performance (without justification): on the basis of a contract in
which the parties owe mutual services to one another, the obligor shall be liable to provide warranty for lack
of conformity

On the basis of law:
• The obliger (seller) is obliged to compensate
• Regardless that his/her behavior was
• Intentional, negligent or he/she acted in good faith

Question 6

Rights of warranty in case of defect performance

Answer 6

• Repair (treatment) or replacement
• Reduction of price
• Withdraw from the contract (termination of contract)
May switch to other type of warranty
• If damage —> compensation

Question 7

Commercial gaurantee

Answer 7

• Any person who guarantees performance of a contract or is required by law to provide guarantee shall
assume liability for lack of conformity during the guarantee period under the conditions set out in the
guarantee statement or in the relevant legislation.
• The guarantor shall be released from liability if he is able to prove that the cause of the defect occurred
after performance.
• This guarantee shall not affect the obligee’s legal rights