Law Summary

Sonntag, 1. Dezember 2013

21:30

Origins and Sources of Law

What is Law?

Laws are the customs and rules we live by. Rules and principles governing the
affairs of a community ,enforced by a legal system.
Earliest recorded laws 1760 B.C. "Hammurabis Code" in Persia

Civil Law

Derived from Roman law

Used in Europe (not UK) and former colonies

Democratically drafted legislation

Judges bound by laws, free to interpret them

No binding precedent

+ Laws are made by a chosen body

+ Easy to find

- Out of touch (it takes a long time to change laws, bad e.g. for urgent
situations)

- Can not grow (since it is written/textual law)

Common Law

Used in UK and their colonies

Judges interpet legislation to create a precedent = judgments of higher courts are

binding

+ Flexible

+ Up to date (expands on legislation)

+ Better understandable (based on precedents, not personal views)

Power with non-elected judges

Judges can't change common law, some precedents may be outdated

Public Law

Relates to relationship between:

State and its civilians
State and organizations
States and other states
 (e.g. taxation law, criminal law)

Private Law

Relates to relationships between individuals (individual persons or legal

entities = companies)

e.g. contract law, labour law, corporate law

Business Law

Business

Offers goods or services in exchange for other goods, services or money

Profit or non-profit
Entrepreneur makes idea become a business

Company

Independent business or complex of businesses whose aim it is to make a

profit
Business that has been incorporated as a registered company (e.g. in
Chamber of Commerce)
Usually formed by two or more people who become shareholders
Publicly or privately owned, owners liability to the company limited by shares

Publicly owned: shares can be transferred freely by the public

Privately owned: shares are held only by participants in the business or closed
group (e.g. family)
 Company = independent legal entity / legal person

Requirements to set up a company:

Appoint directors (manage and represent the company)

Appoint a company secretary from shareholders or advisors
Annually file accounts with Chamber of Commerce
Annually send Annual Return to Chamber of Commerce (update of company
details)
Pay corporate tax
Create a Memorandum of Association and Articles of Association
Declaration that all legal requirements including funding have been complied
with

Duties of the Directors

Directors are responsible for the governance of the company (management of

day-to-day affairs)
Power to execute the management function is given to them in the Articles of
Association
Decisions usually made in board meeting based on majority voting
Some decisions made by directors have to be authorized by shareholders
(e.g. issuing new shares)
Directors are appointed by the board of directors or by the members

Executive directors = employees of the company

Non-executive directors = not members of the company, just attend the
board meetings

Directors have duties towards the company (not towards shareholders), duties
are even laid out in EU and national law

Act in accordance with their powers

Promote the success of the company
Exercise independent judgement
Avoid conflicts of interests (act in the interest of the company)
Must not accept benefits from third parties
 If directors don't uphold their duties they can be held liable by the company
or members. Can be banned from acting as a director.

Memorandum of Association

First part of the company's constitution

Public document
Sets out rules for company's relationship with outside world, includes:

Company name, Address of registered office, liability of members, details of

funding, objectives of the company

Articles of Association

Second part of the company's constitution

Public document
Sets out rules for the internal management and relationship between
company and members
Includes:

Number of directors, method of their appointment, powers of directors,

procedure for calling and the conduct of meetings, voting rights, keeping of
accounts, payment of dividends

Shareholders Agreement

Governs the relationship between shareholders in a company

Articles of Association = first layer of protection for shareholders.
Shareholders agreement second layer
Binding contract on members with regards to membership rights
Sets out general duties of the shareholders
Private contract
 Typical clauses: Requirement of unanimity for certain business decisions,
non-competition statement, arbitration clause, duration of the agreement

Legal Business Entities:

Sole Trader

Any person can set up a business as sole trader

Independent control of business, keeps all profits
Must provide start-up capital himself
Self-employed, paying income tax himself

Total responsibility for all legal liabilities and financial risks

Business in debt = sole trader can be declared bankrupt (no separation
between private and business money)

Partnership

Two or more business owners share the responsibility of owning the business
+ more business expertise / diverse
+ Greater potential for capital investment

Shared profits, shared responsibilities

Self-employed, paying income tax themselves
Total responsibility for all legal liabilities and financial risks
Business in debt = partners can be declared bankrupt

Limited Partnership

Limited partners do not participate in day-to-day management, and have

limited liability (usually just investors)
 Limited Liability Partnership

All partners have limited liability: personally responsible only for their own
acts, not for their partners'

Private Limited Company by Shares

Has a share capital and the liability of each of the members is limited to the
amount unpaid on their shares

A private company cannot offer its shares for sale to the general public

Private Limited Company by Guarantee

Doesn't have shares and members are guarantors rather than shareholders

Liability of members is limited to the amount they contribute to the assets of

the company

Private Unlimited Company

May or may not have share capital, but there's no limit to members liability

Public Limited Company

Has share capital and limits the liability of each member to the amount unpaid
on their shares

May offer shares for sale to the general public and may be quoted on stock
exchange market
 ("amount unpaid on shares" members receive shares, but might not yet have
paid for them = amount unpaid..)

Independent legal entity

Has rights and obligations apart from its members

Will continue to exist even if owners change
May enter into contracts in its company name
Can appear in court as a party to legal action
Protects the owners of the business

Piercing/Lifting the corporate veil

Court can ignore the limited liability protection

Debts will then have to be paid by officers, directors, shareholders.. They are
personally liable

Sham If there was no real separation between company and its owners court
can decide owners aren't entitled to limited liability protection (e.g. when
owners pay personal bills via business account)

Fraudulent Company's actions were wrongful or fraudulent, e.g. recklessly

borrowing and losing money. Court can decide that limited liability protection
shouldn't apply to owners.

Unfair Company's creditors suffered unjust cost (e.g. unpaid bills) court can
pierce corporate veil to hold owners responsible

Contract Law
Contract

A contract is a set of mutual promises

A contract is a legally enforceable agreement between two or more parties
Is a contract not performed (or not entirely performed), creditor can go to
the court and enforce it

Can be written, spoken or by action

Can involve a duty to do or not do something. Failure to do so is called
breach of contract. Law tries to restore the other party to the position they
would have been in had the contract not been breached
Legally a contract is a juridical act

Juridical Act

Refers to a lawful act or expression of will intended to have legal

consequences

Pacta sunt servanda

Latin principle that refers to private contracts meaning that contained

clauses are law between the parties and that nonfulfillment of respective
obligations is a breach of contract

Principles

Contract must be entered into voluntarily

Can only be enforced against the parties to the contract

A contract will involve a duty / obligation to do or not do something

Parties to a an agreement

Buyer Seller

Lawyer Client

Signatories Parties to the

Agreement

Borrower Lender

Wholesailer Retailers Customers

s

Licensee Licensor

Franchiser Franchisees

Defendant Plaintiff

Parts of a Contract

1 Offer
2 Acceptance
 3 Consideration (what each party gives to the others)

Offer

Expression of willingness to enter a contract

Made with the intention that it shall become binding on the offeror as soon
as it is accepted by the offeree
Not all offers are legal offers (e.g. "bike for sale"), but invitation to do an
offer
Sometimes buyers formulate the offer and not the sellers
Offers without commitment (unverbindliches Angebot) can be revoked
even after acceptance

A verbal offer expires when not immediately accepted

A written offer expires when not accepted within a reasonable amount of
time

Counter offer: made in response to a previous offer, automatically rejects

the prior offer

Tender: Unconditional offer of money (to satisfy a debt) or performance

(to satisfy an obligation). A tender may save the tendering party from
penalty for nonpayment or nonperformance and may not be refused
without just cause by the party to whom ist made.
Or
Bid submitted in response for a request for tenders (bidding /
Ausschreibung) containing detailed information on requirements and terms
associated with a potential contract

Acceptance

Final and unqualified acceptance of the terms of the offer

 To make a binding contract, acceptance must exactly match the offer.
Offeree must accept all terms of the offer
Acceptance must be communicated (exception: unilateral contracts, e.g.
promise of reward for return of e.g. lost dog)
Contract is not made until offeror receives acceptance (exception: when
acceptance is supposed to be sent by post, it is effective as soon as it is
posted)
Offeror can prescribe exclusive methods of communication of acceptance

Conditional Acceptance: A conditional acceptance occurs when a person

to whom an offer has been made tells the offeror that he is willing to agree
to the offer provided that some changes are made in ist terms or that
some condition or event occurs. This type of acceptance operates as a
counteroffer. A counteroffer must be accepted by the original offeror
before a contract can be established between the parties.

Consideration

Consideration is an essential element for the formation of a contract. It

may consist of a promise to perform a desired act or a promise to refrain
from doing an act that one is legally entitled to do. In a bilateral contract
an agreement by which both parties exchange mutual promiseseach
promise is regarded as sufficient consideration for the other. In a unilateral
contract, an agreement by which one party makes a promise in exchange
for the other's performance, the performance is consideration for the
promise, while the promise is consideration for the performance.
Consideration must have a value that can be objectively determined. A
promise, for example, to make a gift or a promise of love or affection is not
enforceable because of the subjective nature of the promise.

Contents of a Contract

1 Standard clauses
2 Negotiated clauses
3 Boilerplate clauses
 General structure of a contract

1 The parties
2 Consideration (what each party promises to the other)
3 Introduction to the body (main part) of the contract
4 Definitions and interpretations
5 Agreements
6 Representations and warranties (guarantees)
7 Termination
8 Boiler-plate clauses
9 Signatures
10 Schedules or attachments

Guarantees

No duty to give guarantee

Is linked with life expectancy of product (in case of products)
In business sales buyers are less protected compared with buyers in the
consumers market (because consumers are less skilled in that field)

Boiler-plate Clauses

In commercial contracts there are some clauses that will occur in all
agreements to a greater or lesser extent. They are called boiler-plate clauses.
They are usually general clauses that can be taken from precedents and are
usually not individually negotiated. They are commonly put towards the end of
a contract.

No-subcontracting clause

It is meant to prevent that the supplier assigns or subcontracts the delivery to

an unknown third party

Force majeure clause

It is intended to suspend or terminate the contractual obligations in case of an

event beyond the reasonable control of the parties e.g. government action,
extreme adverse weather
 Service of notices clause

It determines where notices need to be served, the method of service and the
time at which a notice is deemed to be served

Law and jurisdiction clause

It determines the parties' choice on the applicable law and the court with
jurisdiction with regard to the contract

Buyer becoming insolvent clause

It determines the effects of the insolvency of the buyer on the operations of

the contract

The "no authority" clause

It determines the scope of the authority for certain terms of the contract

The whole agreement clause

It determines that the whole agreement and all rights and obligations are
embodied in the contract

The prevail clause

It determines that if there is a battle of form the seller's term will prevail

Discharge of a contract

A contract is discharged (fulfilled, completed, ended) by:

Performance: each party does what was agreed

 Agreement: Parties may agree not to proceed

Frustration: If the contract becomes impossible to discharge due to events

outside the parties' control

Breach: Sometimes a breach of contract may be capable of ending it because

it cannot be continued

Breach or defect of a contract

Possible defects:

Form, capacity, consent, legality, misrepresentation, mistake

Valid contracts are those that meet all legal requirements and may be
enforced

Unenforceable contracts are those that meet basic requirements but fail to
fulfill some other law. E.g. if the person who entered it is too young.

Voidable contracts occur when one or both parties have a legal right to ask
the court to cancel their obligations. E.g. a contract entered into under duress
may be voidable

Void contracts are those that fail to meet basic criteria and are therefore not
contracts at all. E.g. a contract for an illegal purpose

When does a contract exist?

When a party files a suit claiming a breach of contract, the first question the judge must answer
is whether a contract existed between the parties. The complaining party must prove four
elements to show that a contract existed:
 1. Offer - One of the parties made a promise to do or refrain from doing some specified action in
the future.

2. Consideration - Something of value was promised in exchange for the specified action or
nonaction. This can take the form of a significant expenditure of money or effort, a promise to
perform some service, an agreement not to do something, or reliance on the promise.
Consideration is the value that induces the parties to enter into the contract.

The existence of consideration distinguishes a contract from a gift. A gift is a voluntary and
gratuitous transfer of property from one person to another, without something of value promised
in return. Failure to follow through on a promise to make a gift is not enforceable as a breach of
contract because there is no consideration for the promise.

3. Acceptance - The offer was accepted unambiguously. Acceptance may be expressed through
words, deeds or performance as called for in the contract. Generally, the acceptance must mirror
the terms of the offer. If not, the acceptance is viewed as a rejection and counteroffer.

What to do in case of breach / non-performance:

1 Creditor writes a letter

1 In the letter the debtor is put into default by a written warning granting
him a reasonable period for the performance (second change)

2 After exp. of that period : default

Exoneration clause

An exoneration clause is a stipulation in which one of the contracting parties

has excluded itself from liability for the damage to the other party (e.g. no
responsibility for wardrobe..)

The Common Law of Tort

 A tort is a civil wrong independent of a contract
E.g. person destroys someone's property has to compensate damages
In a business environment a contract may not provide sufficient protection
for all consumers because the contract will only protect the parties of the
contract
The most well known form of tort is negligence

Negligence

Tort of negligence means that where a person A suffers an injury because of

negligence of person B, person A has the right for compensation of damages
Injury can be physical, psychological, reputational
Can relate to many injury situations: road accidents, illness,...

Sample Questions

Which statement about law systems in Europe is correct ?

1 All law systems in Europe can be characterized as Civil law systems

1 Every country has its own specific and different legal system
1 All countries once occupied by the Romans have the same legal system
1 They can be divided in Civil law and Common Law

Name two types of historically derived legal systems & give one advantage of each.

Both civil & common law systems exist. The civil system derives from Roman law and is a system where laws are
drafted and written. One advantage is that laws are easy to find and are interpreted by the courts. In the Common
law system judges have more power in making laws. This is a flexible and up to date system of maintaining law.
Name three basic business models and describe an advantage & disadvantage of
each.

Sole trader-owned by one person who has all the decision making power and all the financial & legal risk.
Partnership-a business owned by two or more people. They have different expertise & can share more capital. They
too have all the financial & legal risk. Limited liability Company. This is a registered independent legal entity owned
by one or more people with publicly or privately. The advantage is limited financial liability for the owners. A
disadvantage is the financial & legal requirements to be met.

When a business deal is made how can it be described?

1 A juridical act
1 A gentlemens agreement
2 A domestic contract
1 A social contract

What is the legal definition of the law of tort?

1 Breaking the terms of a contract

1 A criminal act
1 A civil wrong outside a contract
1 A crime within a contract

Describe the process that a claimant must prove in a claim for the tort of
negligence

Person A -the claimant, must prove that: Person B -the defendant, owed a duty of
care; and failed to perform that duty; and as a result, person A -the claimant,
suffered damage

ADR, Arbitration, Civil Litigation

ADR Alternative Dispute Resolution

 Voluntary
Decisions can't be enforced depends on goodwill of the parties involved
Private (discrete)
May save business relationship
Faster and cheaper than Court and Arbitration

Due to that probably not all facts will be disclosed

Types:

Mediation Mediator receives statements from both parties and

discusses them with them, proposes solutions

Med-Arb If mediation doesn't work Arbitration will be used

Mini-Trial "Tribunal" of not immediately connected (to the parties)

persons, trying to settle

Expert appraisal Dispute referred to experts in that field

Judicial appraisal referred to former judges

Expert determination expert is selected, his decision is binding but not

enforceable

Arbitration

Decisions are binding on parties

Parties can choose arbitrators, thus solutions more practical than court
decisions
Also in a place more convenient to the parties
Quicker than litigation
Less formal
Private

Certain things (e.g. injunctions) aren't available

Not as deep of an investigation as in court, not always cheaper
 Parties sign arbitration agreement (part of their contract) which gives the
arbitrators power/jurisdiction
Doctrine of Separability: Arbitration is separate from the contract, so
even when the contract is void, arbitration is still valid

Arbitration Concepts:

Ad hoc arbitration: not administered by arbitration institution, thus

parties have to determine everything (e.g. number of arbitrators,
procedure, power of arbitrators, etc. themselves)

Institutionalized arbitration: specialized institution facilitates

arbitration. They administer everything (set guidelines etc. Arbitration
still run by one arbitrator, not institution)

Voluntary arbitration: arbitration by the agreement of the parties

Compulsory arbitration: Arbitration forced by law onto the parties

Final offer arbitration: Each party submits a final offer, arbitrator

decides for one

Judicial arbitration: Court ordered arbitration that is final

Arbitral decision final, binding and legally enforceable.

Appeals are possible so are corrections and different interpretations.

Partial challenge: Whether claims are really under arbitrators

jurisdictions (= whether they were set in the arbitration part of the
contract)
Total challenge: Whether the entire arbitration agreement is valid

Conciliation: A conciliator aims to assist the parties find a resolution. He

is likely to suggest a solution but has no power to enforce it. It is popular in
the UK with employment issues. Disputes will first be referred to
conciliation before a court case.
 Mediation- A mediator will assist the parties to communicate with each
other and find their own solution. It is popular with property or custody
issues

Ombudsman- Organizations supervising professions such as law,

insurance, financial & banking will have officials called ombudsmen who
have power to investigate and resolve problems reported to them by
dissatisfied customers

Civil Litigation

Legal dispute not criminal. Between parties that seek money or

performance compensation.
Claim Jurisdiction Decision. Loser pays process costs.
There are limits to how long after an event a claim can be brought to court
(usually some years)
When parties begin a claim or find out about a claim against them they will
engage a lawyer to represent their interests

1 Pre-Commencement of Proceedings
Letters of claim: Rules are different in each country but generally each
party must tell the other parties their complaints (or allegations) or their
defense.
o This may lead to an early settlement.

1 Commencement of action
Issue of claim: The claimant or plaintiff must complete a form giving full
details of the claim and submit this form to the court to be processed and
sent to the Defendant.
o The court case has begun.
Defendants response: The Defendant has a set period of time to respond
by admitting or denying the claim. If denying the claim a detailed defense
must be submitted to the court and sent to the Claimant.
 1 Interim matters the preparation for trial
Each country will deal with preparation for trial differently.
The court may set a timetable.
The judge may order enquiries.
Make financial offers to settle the claim.
Each party will prepare their evidence.

Evidence

All information that each party wants the court to see and hear.
Documentary evidence: anything that is recorded or captured, i.e. Written
documents, pictures, objects, cctv, etc.
Witness evidence. What to include in a witness statement?
o Eye witness. Name & why they are giving evidence
o What they saw. That they have told the truth.
o Expert witness. Name & what expertise & qualifications they have.
What they examined. Their expert conclusion

1 Trial

Each party will present their version of events, their evidence and legal
arguments to the judge.
Witnesses may be called and questioned by all the parties.
The claimant has the burden of proof, i.e. must prove the claim on the
balance of probabilities.
It is more likely than not that the claimants version of events is true.
(differs with criminal law!)
Any representatives primary duty is to the court to serve justice.

1 Judgement and Post-Trial (after trial)

The judge will make a decision about who has been successful and explain
the reasons for the decision.
This is called judgement for the claimant or judgement for the defendant.
If the claimant is successful the judge will order a remedy* and decide who
should pay all the costs of the action (The usual remedy for a successful
claim is an award of financial compensation (or damages) paid by the
losing party.)
Usually the losing side pays all the costs.
 Enforcement. The judge will order the compensation & costs to be paid
within a certain time. If it is not done, interest will apply and the winning
party can return to the court for help to collect the payment.

European Union

From European Economic Community to European Union

28 countries that give up parts of their sovereignty (decision making) to
shared institutions in order to gain benefits (e.g. of size)

Treaty of Rome: Creating EEC

Treaty of Maastricht: Restructuring, creation of EU
Treaty of Nice: Preparation for new member states
Treaty of Lisbon: Reorganization of EU

EU Parliament
Member states represented proportionally to population
Nearly 800 representatives, election every 5 years (next one 2014)
Tasks:
Legislate pass & amend laws together with Council of Ministers
Supervise approve EU Commission (can also disband the commission),
ask questions to Council&Commission
Budget together with EU Council decides the household budget of the
European Union

European Council
Members: Heads of States/Government of the member states
Decide on overall strategy & direction of the EU

Council of Ministers
Legislate together with EU parliament
 Coordinate member states' policies
Define EU foreign policy
Sign agreements between EU and non-EU countries
Approve EU budget together with parliament

Usually foreign ministers. For specialized meetings, e.g. environment

concerns, specialized ministers, e.g. environment ministers
Decisions are voted on. Number of votes based on population of member
state (e.g. Germany most votes)

European Commission
Proposes legislation, policies and programmes of action
Implements decisions of Parliament and Council
Upholds the interests of the EU
Enforces EU law, represents EU internationally

28 commissioners (one per member state + president)

Court of Justice
Ensures EU law is interpreted & applied in the same way in every member
state
Checks legality of actions of EU institutions
Settles disputes between member states, institutions, businesses and
individuals

Principle of Conferral: Division of competences between EU and

individual member states

Principle of Subsidiarity: EU laws are only created if national laws don't

suffice

Principle of Proportionality: laws should not go beyond what is needed

to achieve the goal

Regulation: applicable and binding in all member states

Directives: bind member states to reach a particular objective member
states can decide on their own how they will reach it

Decisions: binding (e.g. for company disputes)

Law Abbreviations and Common Terms

Inter alia Among other things

Vice versa In the opposite way

Ipso facto By this fact / in itself

Per capita For each person

Prima facie As things seem first

Caveat The buyer is responsible for checking the

emptor purchase

Bona fide In good faith

Toties As often as necessary

quoties
E.g. Exemplia gratia

Inc Incorporated

A.k.a. Also known as

p.p Per procura

Recd Received

VAT Value Added Tax

P.r. Proportional
representation

AOB Any other business

E.& Erros and omissions

o.e. excepted

IOU I owe you

plc Public limited company

Co Company

EEIG European Economic Interest Grouping

AIM Alternative Investment Market

AGM Annual General Meeting

L/C Letter of Credit

IOU I owe you

MBO When the top executives buy the company they work for
(Management Buyout)

Inc Incorporated

VAT Value Added Tax

Ltd Limited

GNP Gross National Product

c.o.d. Cash on delivery

Rec Received

LLP Limited Liability Partnership

ADR Alternative Dispute Resolution

DTI Department of Trade and Industry

IAS International Accounting Standards

IASB International Accounting Standards Board

EGM Extraordinary General Meeting

NED Non-Executive Director

shares They represent partial ownership of a company with limited liability

members shareholders

Equity The right to receive dividends as part of the profit of a company in

which you own shares
Nominal capital The maximum nominal value of shares as authorised to issue

Subscriber The person who forms a company limited by shares

Joint venture Business activity in which 2 or more companies invested

Convocation Gathering, calling a meeting

Affectation Allocation

Dividend A proportionate distribution of profits in the form of a money payment

to shareholders

Corporation Limited liability companies

Issued capital The nominal value of shares issued to shareholders

Debenture A document which is evidence of the existence and terms of a loan

Share premium The excess paid above the nominal share value

Allotment of Becoming a member

shares

Authorised The amount of share capital stated in the articles of association and
capital the memorandum (=nominal capital)

Entry barriers Factors that make it difficult to enter an existing market

Synergy A combination that is greater/better than the separate parts

Red tape Excessive bureaucracy

Win-win A situation that is profitable for both parties

situation

Economies of Decrease in cost as a result of working on a larger scale

scale

Merger Combination, union, integration, joining together

Cash cow Product or service that generates the largest profit for a business at
that moment

Memorandum Written record of the agreement

Subject to Depending on
Proprietors Owners

Touching the Concerning the interpretation

meaning

Without prejudice Not affecting

Right and power Legal authority

Mutual Involving both parties

Disclosure Publication/making known

Solely Merely

Facsimile Fax

Discretion Power to decide

Undersigned The ones who signed the document

Reasonable Every effort possible

endeavours

Rescission A cancellation of e.g. a contract

injunction A court order telling someone to stop doing something or not to

 do something

Abridge, Change
alter

Describe Detail

Indemnify Protect

Warrant Guarantee

To give Inform
notice

Revert to Return to

Construe as Interpret
as

Engage Involve
Trial Judicial examination of disputes between parties

Lawsuit Action

Enforcemen Putting the law into action

t

Jurisdiction The legal power to make decisions

Adherence Following the rule/keeping to an agreement

Tort A breach of a duty fixed by civil law (no contract base)

ADR An alternative to court adjudication

Damages Financial compensation

Precedent Case that sets the rules

Due A thorough check, usually of any pending law suits

diligence

Negligent Without the required duty of care

Judiciary The body of judges

Affadavit A written statement, signed and sworn before a solicitor, judge or other
 official and which then can be used as evidence in court hearings

Pending suit When a lawsuit is being heard

Noun- Combinations
verb

Reach A verdict

Defend Your client

Settle Out of court

Negotiate An agreement

Bring A lawsuit against an other in

court

Pleading The case in court

Deliver A judgement

Dismiss An appeal
Term Definition

Sovereignty Self-governing power

Treaties and Written agreements between two or more sovereign nations or

conventions between nations and an international organization

Ratify To formally approve so it becomes law

Conventional Treaties and conventions

international law

Customary International law based on a long established tradition, generally

international law and consistently adhered and widely accepted as a practice to be
followed

GATT General Agreement of Trade and Tariffs

WTO World Trade Organization

EFTA European Free Trade Organization

OECD Organization for European Cooperation and

Development
ILO International Labour Organization

UNCTAD United Nations Conference on Trade and

Development

ICJ International Court of Justice

ISO International Standardisation Organization

APEC Asian Pacific Economic Cooperation

IMF International Monetary Fund

UNCITRA United Nations International Commissions on

L Trade Law

ECB European Central Bank

EEC European Economic Community

OPEC Organization for Petroleum Exporting Countries