4. Law of Contract

Question 1

Exchange

Answer 1

One party gives something to another party and receives something in return

Question 2

Freedom of contract

Answer 2

Enforceable rights and obligations of the parties can to a large extent be decided by the parties themselves

Question 3

General conditions

Answer 3

Set of standardised rules that parties often make use of to suit their own interests

Question 4

Default and mandatory rules

Answer 4

Default rules that are automatically applicable if the parties have not made any other arrangements

Question 5

National rules

Answer 5

Official contract law is primarily produced by the legislature and the courts

Question 6

European rules

Answer 6

European legislature dictates certain contract laws that all the Nation States have to follow, through certain treaties

Question 7

Supranational law

Answer 7

Contains rules that apply to commercial cross border transactions (Convention on Contracts for the International Sale of Goods (CISG)

Question 8

Soft law

Answer 8

Model rules, intended to influence the setting of norms or the deciding cases by the formal institutions or can be a source of inspiration for parties drafting a contract

Question 9

Gratuitous promises

Answer 9

A purely gratuitous problem is usually viewed with so much suspicion that most civil law jurisdictions require this promise to be put in a notarial deed

Question 10

Consideration

Answer 10

A promise must be given for a promise of counter performance by the other party