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LECTOCOMPRENSIN
INGLS
MATERIAL DIDCTICO
ALUMNOS
UNIDAD 3

DEPARTAMENTO DE IDIOMAS

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UNIDAD 3:

CONTRATOS

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 NDICE DE CONTENIDOS

TEXTO 1: Introduction to the Law of Contract

TEXTO 2: Contractual Agreement Offer and Acceptance

TEXTO 3A: Validity of Offers

TEXTO 3B: The Acceptance

TEXTO 4: Carlill v Carbolic Smoke Ball Co.

TEXTO 5: Contracts in Images

APNDICE 1: Contract Law How to Create a Legally Binding

Contract

APNDICE 2: Q&A: What are zero-hours contracts?

APNDICE 3: What You Didnt Know About Contract Law

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TEXTO 1: Introduction to the Law of Contract
Fuente: http://www.lawteacher.net/contract-law/introduction.php

Introduction to the Law of Contract

DEFINITION

A contract may be defined as a legally binding agreement or, in the words of Sir
Frederick Pollock:

"A promise or set of promises which the law will enforce"

The agreement will create rights and obligations that may be enforced in the courts.
The normal method of enforcement is an action for damages for breach of contract,
though in some cases the court may order performance by the party in default.

CLASSIFICATION

Contracts may be divided into two broad classes:

1. Contracts by deed

A deed is a formal legal document signed, witnessed and delivered to effect a

conveyance or transfer of property or to create a legal obligation or contract.

2. Simple contracts

Contracts which are not deeds are known as simple contracts. They are
informal contracts and may be made in any way - in writing, orally or they may be
implied from conduct.

Another way of classifying contracts is according to whether they are "bilateral" or

"unilateral":

1. Bilateral contracts

A bilateral contract is one where a promise by one party is exchanged for a

promise by the other. The exchange of promises is enough to render them both
enforceable. Thus, in a contract for the sale of goods, the buyer promises to pay the
price and the seller promises to deliver the goods.

2. Unilateral contracts

A unilateral contract is one where one party promises to do something in

return for an act of the other party, as opposed to a promise, e.g., where X promises
a reward to anyone who will find his lost wallet. The essence of the unilateral
contract is that only one party, X, is bound to do anything. No one is bound to search

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for the lost wallet, but if Y, having seen the offer, recovers the wallet and returns it,
he/she is entitled to the reward.

ELEMENTS

The essential elements of a contract are:

1. Agreement

An agreement is formed when one party accepts the offer of another and
involves a "meeting of the minds".

2. Consideration

Both parties must have provided consideration, i.e., each side must
promise to give or do something for the other.

3. Intention to create legal relations

The parties must have intended their agreement to have legal

consequences. The law will not concern itself with purely domestic or
social agreements.

In some cases, certain formalities (that is, writing) must be observed.

5. Capacity

The parties must be legally capable of entering into a contract.

6. Consent

The agreement must have been entered into freely. Consent may be
vitiated by duress or undue influence.

7. Legality

The purpose of the agreement must not be illegal or contrary to public

policy.

A contract which possesses all these requirements is said to be valid. The absence of
an essential element will render the contract either void, voidable or unenforceable
(as to which see below).

In addition, a contract consists of various terms, both express and implied. A term
may be inserted into the contract to exclude or limit one party's liability (the so-
called "small print"). A term may also be regarded as unfair.

A contract may be invalidated by a mistake and, where the contract has been
induced by misrepresentation, the innocent party may have the right to set it aside.
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As a general rule, third parties have no rights under a contract but there are
exceptions to the doctrine of privity.

There are different ways of discharging a contract and remedies are available for
breach of contract at common law and in equity.

ENFORCEABILITY

1. Void contracts

A "void contract" is one where the whole transaction is regarded as a

nullity. It means that at no time has there been a contract between the
parties. Any goods or money obtained under the agreement must be
returned. Where items have been resold to a third party, they may be
recovered by the original owner.

2. Voidable contracts

A contract which is voidable operates in every respect as a valid contract

unless and until one of the parties takes steps to avoid it. Anything
obtained under the contract must be returned, insofar as this is possible. If
goods have been resold before the contract was avoided, the original
owner will not be able to reclaim them.

3. Unenforceable contracts

An unenforceable contract is a valid contract but it cannot be enforced in

the courts if one of the parties refuses to carry out its terms. Items received
under the contract cannot generally be reclaimed.

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TEXTO 2: Contractual Agreement Offer and
Acceptance

Contractual Agreement Offer and Acceptance

Fuente: http://www.e-lawresources.co.uk/Offer-and-acceptance-contract.php

Contractual agreement has traditionally been analysed in terms of offer

and acceptance. One party, the offeror, makes an offer which once
accepted by another party, the offeree, creates a binding contract. Key
concepts that you need to familiarise yourself with in relation to offer
and acceptance include the distinction between an offer and an
invitation to treat - you need to be able to identify specific examples of
where an offer or an invitation to treat exists. Also it is important to
know the difference between bilateral and unilateral contracts. The case
of Carlill v Carbolic Smoke ball co. is the leading case in both these areas
so it is worth concentrating your efforts in obtaining a good
understanding of this case.

Offer In order to amount to an offer it must be shown that the offeror

had the intention to be bound.

Invitation to treat

An offer needs to be distinguished from an invitation to treat. Whereas

an offer will lead to a binding contract on acceptance, an invitation to
treat cannot be accepted; it is merely an invitation for offers. Goods on
display in shops are generally not offers but an invitation to treat. The
customer makes an offer to purchase the goods. The trader will decide
whether to accept the offer.

Advertisements

Advertisements are also generally invitations to treat. However, in some

instances an advert can amount to an offer.

Termination of offers

An offer may be terminated by:

1. Death of offeror or offeree

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2. Lapse of time

An offer will terminate after a reasonable lapse of time. What amounts

to a reasonable period will depend on the circumstances.

3. Revocation

The offeror may revoke an offer at any time before acceptance takes
place. This may not apply in unilateral offers where acceptance requires
full performance.

4. Counter offer

A counter offer is where an offeree responds to an offer by making an

offer on different terms. This has the effect of destroying the original
offer so that it is no longer open for the offeree to accept.

Acceptance

Once a valid acceptance takes place, a binding contract is formed. It is

therefore important to know what constitutes a valid acceptance in order
to establish if the parties are bound by the agreement. There are three
main rules relating to acceptance:

1. The acceptance must be communicated to the offeree.

2. The terms of the acceptance must exactly match the terms of the offer.

3. The agreement must be certain.

1. Communication

The general rule is that the offeror must receive the acceptance before it
is effective. Silence will not generally amount to an acceptance.
Acceptance can be through conduct.

The postal rule

Where it is agreed that the parties will use the post as a means of
communication, the postal rule will apply. The postal rule states that
where a letter is properly addressed and stamped, the acceptance takes
place when the letter is placed in the post box. It is relatively easy for the
parties to exclude the postal rule.

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2. The terms of the acceptance must exactly match the terms of the offer.

If the terms differ this will amount to a counter offer and no contract will
exist.

3. The agreement must be certain

When viewed objectively it must be possible to determine exactly what

the parties have agreed to.

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TEXTO 3A: Validity of Offers

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TEXTO 3B: The Acceptance

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TEXTO 4: Carlill v Carbolic Smoke Ball Co.

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 Court of

Appeal
Fuente: http://e-lawresources.co.uk/Carlill-v-Carbolic-Smoke-Ball-Co.php

A Newspaper advert placed by the defendant stated:

100 reward will be paid by the Carbolic Smoke Ball Company to any person
who contracts the influenza after having used the ball three times daily for two
weeks according to the printed directions supplied with each ball...

1000 is deposited with the Alliance Bank, showing our sincerity in the matter."

Mrs Carlill purchased some smoke balls and used them according to the
directions and caught flu. She sought to claim the stated 100 reward.

The defendant raised the following arguments to demonstrate the advertisement

was a mere invitation to treat rather than an offer:
1. The advert was a sales puff and lacked intent to be an offer.
2. It is not possible to make an offer to the world.
3. There was no notification of acceptance.
4. The wording was too vague to constitute an offer since there was no stated
time limit as to catching the flu.
5. There was no consideration provided since the 'offer' did not specify that the
user of the balls must have purchased them.

Held:
The Court of Appeal held that Mrs Carlill was entitled to the reward as the
advert constituted an offer of a unilateral contract which she had accepted by
performing the conditions stated in the offer. The court rejected all the arguments
put forward by the defendants for the following reasons:
1. The statement referring to the deposit of 1,000 demonstrated intent and
therefore it was not a mere sales puff.
2. It is quite possible to make an offer to the world.
3. In unilateral contracts there is no requirement that the offeree communicates
an intention to accept, since acceptance is through full performance.
4. Whilst there may be some ambiguity in the wording this was capable of being
resolved by applying a reasonable time limit or confining it to only those who
caught flu whilst still using the balls.
5. The defendants would have value in people using the balls even if they had
not been purchased by them directly.

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TEXTO 5: Contracts in Images

Fuente: https://cdn.andertoons.com/img/toons/cartoon7093.png

Fuente: http://worldartsme.com/images/contract-fine-print-clipart-1.jpg

Fuente: http://www.stus.com/images/products/ctr0072.gif y http://stus.com/images/products/ethics.jpg

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 UNIDAD 3:

CONTRATOS

MATERIAL ADICIONALNAL

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Apndice 1: Contract Law How to Create a
Legally Binding Contract

Contract Law How to Create a Legally Binding Contract

Fuente: https://www.sba.gov/blogs/contract-law-how-create-legally-binding-
contract
By Caron_Beesley, Contributor

Published: January 2, 2013Updated: August 22, 2014

Whether you are entering into a relationship with a customer, a vendor or an
independent contractor, contracts are a fact of business. You need them
because they serve as legally valid agreements protecting your interests.
But arent contracts laden with legalese? Dont they have to be blessed by an
attorney to ensure their validity? Not always.
In fact, Ive seen contracts come across my table that are less than one page in
length, in plain English, and still legally binding. How?
Generally, to be legally valid, most contracts must contain two elements:

All parties must agree about an offer made by one party and accepted
by the other.
Something of value must be exchanged for something else of value. This
can include goods, cash, services, or a pledge to exchange these items.

In addition, certain contracts are required by state law to be in writing (real

estate transactions, for example), while others are not. Check with your state
or with an attorney if you are unclear, but its always good business practice
to put every binding agreement in writing.
Heres how your small business can comply with these requirements and
ensure your contracts are legally valid:
1) The Ins and Outs of Reaching an Agreement
The point when two parties come to an agreement can be a little fuzzy. For
example, many businesses will put a standard contract template before an
independent contractor and expect it to be signed without any discussion. At
that point and the law is clear on this a legal contract exists only when one
party makes an offer and the other accepts all terms of that offer. So in this
example, the contractor is still free to rebut any of the points in the contract
and make a counter offer, until an agreement has been reached.
How Long Should an Offer Stay Open?
Offers are rarely accepted immediately and further discussions or
amendments may be required. Unless the offer has a deadline for acceptance,
it can remain open. Its good practice to include an expiration date to ensure

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you have room to maneuver should you wish to change the terms or revoke
the offer before a certain date.
Offers that are subject to an expiration date known as option agreements
are typically price-driven or give the buyer the opportunity to mull the
decision without fear of losing out to a competing buyer. Its important to
understand that a seller can place a fee on option agreements. For example, if
you decide to give a buyer 30 days to think over a purchase, you can charge
him for that. This typically occurs when the product or service is of high value
or when the seller pledges not to sell that product to another customer during
that 30-day option period. Likewise, a seller cant revoke the offer until that
30-day period ends.
What about Counteroffers?
Bargaining or negotiating can often lead to a counteroffer. Once made, the
legal responsibility to accept, decline, or make another counteroffer then shifts
to the original offeror.
2) The Importance of Exchanging Something of Value
In addition to ensuring both parties are in agreement on the terms of an offer,
the second element that ensures a contract is legally valid is that both parties
exchange something of value. This is important since it differentiates a
contract from being a one-sided statement or even a gift. Something of value
might be a promise to perform certain services by one party while the other
party agrees to pay a fee for the work performed.
Most business transactions are based on this exchange of promises. However,
the act of doing the work can also satisfy the exchange of value rule. For
example, if you contract with a vendor to provide you X and Y, but you
decide you need to add Z to the final deliverable, the vendor can create a
binding contract by actually doing Z something which you cant quibble or
get out of if you change your mind.
More Information and Resources
For more information about the legality of any agreements, consult a lawyer
or attorney.
For insights into what a contract should look like, check out available
templates from SCORE. Use the search field to find contract agreements or
other keywords for the type of contract you are looking to create. Also check
out these blogs for additional tips:

Setting Up a Client Contract Must Know Information for Freelancers

Starting a Freelance Business How to Take Care of Legal, Tax and
Contractual Paperwork
5 Legal Myths about StartUps
How and When to Use Non-Compete Agreements Appropriately

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Apndice 2:Q&A: What are zero-hours contracts?

Fuente: http://www.bbc.com/news/business-23573442

Q&A: What are zero-hours contracts?

1 April 2015
Ed Miliband has vowed that a Labour government would give employees on
"exploitative" zero-hours contracts the legal right to a regular contract after
they have worked 12 weeks of regular hours.

Q: What are zero-hours contracts?

A: Zero-hours contracts, or casual contracts, allow employers to hire staff with no
guarantee of work.
They mean employees work only when they are needed by employers, often at
short notice. Their pay depends on how many hours they work.
Some zero-hours contracts require workers to take the shifts they are offered,
while others do not.
Sick pay is often not included, although holiday pay should be, in line with
working time regulations.

Q: Who is on them?
The Office for National Statistics (ONS) says that 697,000 people were employed
on zero-hours contracts for their main job between October and December 2014,
based on figures from the Labour Force Survey. That represents 2.3% of the UK
workforce.
This figure is higher than the figure of 586,000 (1.9% of people in employment)
reported for the same period in 2013. The ONS said it was unclear how much of
the rise was due to greater recognition of the term "zero-hours contracts", rather
than new contracts being offered.
The number of contracts that do not guarantee a minimum number of hours was
1.8 million as of August 2014. That was 400,000 more than the previous estimate
for January 2014.
The ONS said the differences in the two totals could reflect seasonal factors,
because they cover different times of the year.
A survey of employers by the Chartered Institute of Personnel and Development
(CIPD) found that a third of voluntary sector organisations used zero-hours
contracts, along with a quarter of public sector employers and 17% of private
sector firms.
A high proportion of staff at companies including retailer Sports Direct, pub
chain JD Wetherspoon and cinema operator Cineworld are on zero-hours
contracts. They are also used by other employers, including a number of London
councils and Buckingham Palace.

Q: Why are they controversial?

A: There is concern that zero-hours contracts do not offer enough financial
stability and security.
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The ONS found that employees on such a contract worked an average of 25
hours a week.
However, about a third of those on zero-hours contracts want more hours -
mostly in their current job - compared with just 10% of other people in
employment.
The CIPD research found that 16% of zero-hours workers said their employer
often failed to provide them with sufficient hours each week.
The ONS said that zero-hours workers were more likely to be women or in full-
time education and aged under 25 or over 65.
Employees on zero-hours contracts also do not have the same employment rights
as those on traditional contracts, and critics are concerned that the contracts are
being used to avoid employers' responsibilities to employees.
The CIPD warned that employers may also take advantage of zero-hours
contracts by using them as a management tool - offering more hours to favoured
employees and fewer to those less valued.

Q: Why do employers use them?

Employers say zero-hours contracts allow them to take on staff in response to
fluctuating demand for their services, in sectors such as tourism and hospitality.
Employers also say that many workers appreciate the flexibility that a zero-hours
contract gives them. Some 38% of workers in the CIPD research described
themselves as employed full-time, working 30 hours or more a week, despite
being on zero hours.
Michael Burd, joint head of employment at the law firm Lewis Silkin, says the
majority of employers use zero-hour contracts, not to avoid giving employees
their rights, but to avoid paying fixed overheads and give them flexibility over
their workforce.
He points out that this flexibility is envied by employers in struggling economies
such as Spain and Greece, where potential costs may dissuade employers from
taking on staff.
The Institute of Directors has voiced concern about Labour's proposed policy,
saying the changes would be unnecessary and potentially damaging.
Christian May, head of communications and campaigns, said: "Limiting the use
of a zero-hours contract to just 12 weeks would apply rigid controls on an
important element of our flexible labour market. They are used by a little over 2%
of workers, which can hardly be described as an epidemic. Nobody supports the
misuse of these contracts, but demonising and ultimately outlawing them will
simply risk jobs."
Simon Rice-Birchall, partner at law firm Eversheds, said it was not clear how the
proposed new right would apply, given that Labour refers to "employees" rather
than "workers".
"Many staff on zero-hours contracts are workers and do not have full
employment status. In addition, depending how the change in the law is drafted,
there is a risk that some employers may simply offer contracts with minimal
fixed hours to limit its impact," he said.

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Apndice 3:

What You Didnt Know About Contract Law

Fuente: http://common.laws.com/contract-law

What is Contract Law?

A contract is a legally binding agreement between two or more

individuals or parties who share mutual obligations. Contract law is
therefore, the scope of law that regulates and enforces certain obligations
attached to a contractual agreement. The typical remedy attached to a
breach of contract, in contract law, is the delivery of damages or
monetary compensation. This remedy can be delivered--by the
individual or party who breaches the contractthrough a specific
performance that was previously required in the contract or through
injunctions. Both forms of remedies will ultimately award the damaged
party the benefit of the bargain or by compensating the damaged
party through the delivery of monies.

Basic Principles of Contract Law:

Contract law is predominantly based on the principles expressed in the

phrase agreements to be kept; this foundation of contract law simply
means that when a contract is agreed upon between two parties, the
stipulations latent in the contract must be upheld by both entities. A
failure to abide by these stipulations and to ultimately neglect the
obligations within the contract will result in a penalty that is enforced
through the adherence of contract law.
Contract law, in essence, can be classified as part of a general law of
obligations; through this definition, contract law can be grouped within
tort law, restitution and unjust enrichment. As a means of economic
ordering, contract law will rely on the notion of consensual exchange; in
American jurisdictions, contract law is a broader scope of law that will
encompass a larger category of agreements.
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As is common with many legal principles, the basic characteristics of
contract law will vary between jurisdictions. In the United States,
contract law requires three foundational elements: a contract will require
an offer, an acceptance and consideration in order to manifest itself into
a legally valid contract. In addition to these characteristics, many courts
will also look to the legality of the contract when determining its
validity. If a contract requires a part to do something illegal, it will be
considered void.

Contract Law in Common Law:

Within common law, the elements of a contract are consideration and

mutual assent. In a common law jurisdiction, mutual assent is reached
through the initial offer and acceptance of the contract, meaning the
offer is met with an acceptance that does not vary in terms or
stipulations. If a party agrees to accept the contract but does not agree to
all the terms within the contract, the agreement in common law, is not
regarded as an acceptance. This agreement is labelled a counteroffer
and, therefore, can be classified as a formal rejection to the original
offer.
The most important feature of contract law is that one party must make
an offer for an agreement that the other party accepts. When the
agreement is made tangible through a signature, the agreement takes the
form of a legally-binding document.

http://www.oxfordlearnersdictionaries.com/definition/english/money
#money__

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