BREAKING OFF NEGOTIATIONS & PACTA DE CONTRAHENDO

Question 1

Relationship between parties:

Answer 1

relationship between parties is governed by good faith and objective reasonableness.

Question 2

NORMATIVE CONSIDERATIONS:

Answer 2

each party is expected to have due regard of the legitimate expectations and interests of the other.

Question 3

PACTA DE CONTRAHENDO:

Answer 3

is simply a contract aimed at the conclusion of another contract.

Question 4

TWO TYPES OF PACTA DE CONTRAHENDO

Answer 4

1. the option
2. the preference contract

Question 5

THE OPTION

Answer 5

is an agreement restricting the offeror’s right to revoke the offer.

Question 6

THE PREFERENCE CONTRACT:

Answer 6

is an agreement whereby a person binds himself to give preference to another person should he conclude another type of agreement.

Question 7

OPTION CONTRACT
TWO OFFER:

Answer 7

MAIN OFFER: what is the option all about?
2. offer to keep the main offer open for a while.

Question 8

REMEDIES TO THE BREACH:

Answer 8

OPTION 1: cancel the contract, entitles the aggrieved party to restitution and recover damages.
OPTION 2: uphold the contract, entitles the aggrieved party to apply for specific performance and uncertainty.