Chapter 12: The Essential Elements of a Contract

Question 1

Consequence for missing elements of a contract

Answer 1

The absence, unlawfulness or defectiveness of any of these elements renders the contract void.

Question 2

Principle of cognition (agreement - essential elements of a contract)

Answer 2

In Italy, a contract is entered into based on the principle of “cognition” (when the offeror receives notice of acceptance), unless he can prove he was unable to receive it.

Question 3

Revoking an offer (agreement - essential elements of a contract)

Answer 3

An offer may be revoked before it is entered into. However, if the party has (in good faith) started performance, the offeror is liable for damages.

Question 4

Irrevocable offers (agreement - essential elements of a contract)

Answer 4

An irrevocable offer is when the offeror agrees to keep the offer for a fixed period of time.

Question 5

Acceptance of an offer (agreement - essential elements of a contract)

Answer 5

Acceptance must match the offer exactly (silence ≠ acceptance)

Question 6

Preliminary contracts (agreement - essential elements of a contract)

Answer 6

Parties may enter in preliminary contracts (binds them to enter into contract).

Question 7

The causa (essential elements of a contract)

Answer 7

The causa is the aim of the contract (conferred with the intention to enrich the recipient).

An unlawful causa is one that goes around the application of the rule (fraud).

Question 8

The subject matter (essential elements of a contract)

Answer 8

Must be possible, lawful and determined/determinable (define performance due).

Question 9

The form (essential elements of a contract)

Answer 9

The form is up to the will of parties. It may be simple written (signed), involve authenticated signatures, or authenticated CONTENTS

Question 10

Functions of a form (essential elements of contract)

Answer 10

The form has the function to evidence agreement, provide caution and channeling (allow for enforceability).

Question 11

Evidence in writing (form - essential elements of a contract)

Answer 11

Rather than written form requirement, some contracts may be evidenced in writing (they may not contain all elements but still be binding).