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CONTRACTLAW•LessonOneIntroduction•LessonTwoPerformanceandNon-Performance•LessonThreeContractRemediesandComputationofDamages•LessonFourRightsofThirdPartiesLessonOneIntroduction•Case:•theCottonCasesof1973•“Thecriticalissueiswhethertherewasanenforceablepromisetobuyforeachpromisetosell.Webelievetherewas.”contracts•I.ContractNature•１．ContractandcontractlawAcontractisapromiseorasetofpromiseswhichthelawwillprotectandenforce.Thecommonlawcountriesstressthecontractasakindof“promise,”thecivillawcountriesconcernonthe“agreementbetweentheparties.”•Apromiseorsetofpromiseswherethelawgivesaremedywhenbreached,andtheperformanceofwhichthelawrecognizesasaduty.Contractlaw•Contractlawismostobviouslythelawrelatingtoagreementsorpromises.•ThebulkofAmericancontractlawisjudge-madecaselaw.•••TheUniformCommercialCode•TheRestatementofContracts•合同法注释汇编•合同法重述•2.FormationofContract•offerandacceptance•OfferorandOfferee•Meetingoftheminds•Mutualassent•Manifestationofwillingness•“mirrorimage”•“mailboxrule”•OfferandAcceptance•Consideration•NoDefensestoFormationOfferandAcceptanceWhyimportanttohaveofferandacceptancerules?•Helpscourtdecidewhethernegotiationsoranactualbargain•Ensurespartiesagreedonaminimumquantityofterms•GivescourtareliablemethodtodeterminecontentofdealLegalSignificanceofOffer•Createspowerofacceptanceinofferee•OffereecanconcludeadealandbindofferorbyproperassentTerminationofOfferTerminationbyOfferee•Rejection–Notterminatedbyinquiriesorrequestfordifferentterms•Counter-offer•Expirationoftimeperiod–Ifnotimeforacceptance,theofferisdeemedareasonabletime–dependingoncircumstancesAcceptanceWhomayaccept?•PersontowhomofferwasaddressedorifintheclassofpersonstowhomaddressedAcceptancemustbeunequivocal.•CommonLaw:Mirrorimagerule–acceptancemustmirrortermsofoffer•CommercialLaw:AnyacceptanceindicatingintentiontoentercontractisvalidUNLESSmadeconditionedonacceptanceofnewterms•3.NecessaryElementsofaContract•(1)Theremustbeanagreementbetweentheparties;•(2)Theremustbeconsiderationtosupportacontractualclaim;•(3)Theremustbetwoormorepartieswhohavethelegalcapacitytocontract;•(4)Subjectmatterofthecontractmustbelawful;•(5)Theremustbeproperformforacontract.Consideration•Consideration–Abenefitoflegalvaluewhichmustbebargainedforbetweentheparties.ElementsofConsideration1.Bargain–mustexchangesomethingGift–nobargain,noconsideration2.LegalValuea.Generalrule–adequacyorfairnessofconsiderationnotexaminedb.Majorityview–partymustincurdetrimentbydoingsomethingnotlegallyobligatedtodoorrefrainingtorefrainingfromsomethinghehasarighttodo.•4.ClassificationofaContract•----forms•(1)bilateralcontract•(2)unilateralcontract•-----expression•(1)anexpresscontract•(2)implied-in–lawcontract(quasi-contracts)•-----legaleffects•(1)validcontract•(2)voidcontract•(3)voidablecontract•ExpressorImplied1.Express–written2.Implied–fromconduct,pastrelationships•BilateralorUnilateral1.Bilateral-exchangeofpromises2.Unilateral–exchangeofanactforapromise•VoidorVoidableandUnenforceable1.Void–nolegaleffectfrombeginning2.Voidable–partymayelecttoavoidorratify3.Unenforceable–otherwisevalidbutforwhichadefenseexists•Enforceablecontract•Unenforceablecontract•defense5.GroundsforNonperformanceofContracts•(1)Mistake•(2)Fraud•(3)LackofCapacity:MinorsandMentalIncapacity(4)DuressandUndueInfluence(5)Misrepresentation(6)Unconscionability(7)IllegalContractsandContractsAgainstPublicPolicySummary•Tokeeptwopointsinmind:•(1)acontractcontainsapresentundertakingorcommitmentconcerningfutureconductoftheparties,and•(2)thelawsanctionsthecommitmentbyputtingitslegalmachinerybehindit.LessonTwoPerformanceandNon-Performance•1.Rules:•Whenpartiesmakeabilateralcontract,theyexchangepromisesintheexpectationofasubsequentexchangeofperformance•Theprincipalgoaloftherulesapplicabletotheperformancestageofsuchcontractsistoprotectthatexpectationagainstapossiblefailureoftheotherpartytoperform.•2.Problems:•1)Refuseoperform•2)Performinanunsatisfactorymanner•3.Todeveloprulestotheinjuredparty,•Inadditiontoanclaimfordamages,therighttosuspenditsownperformanceandultimatelytorefusetoperformiftheotherpartyfailstoperform.•4.Conditions•Twodistincteffects:•(1)tosuspendperformance•(2)toterminatethecontract••Conditions---bytime•Conditionsprecedent•(先决条件）•Concurrentconditions•（共时条件）•Conditionssubsequent•（后续条件）••Conditions---bythewaytheyarecreated•A.Expressconditions•B.Constructiveconditions•Actualfailureofanexpressorconstructiveconditions1)hindrance,preventionornoncooperation•2)waiverorestoppel•3)impossibilityorcommercialfrustration禁止反言原则”(equitableestoppel)•是英美法系国家的一般契约理论，其基本内涵是“Mywordismybond”——言行一致，不得出尔反尔。英美法系国家传统的契约理论是：合同成立、变更均须有对价(consideration)，才能产生强制执行之效力。可是实践中大量存在着这样的现象，某人许诺赠与他人物品或答应他人无偿为其做某事，但不久又反悔而使受诺人遭受损失。受诺人受到损失后却无法律依据阻却权利人权利的行使。•20世纪40年代以前，英美法系国家的法官解决这一问题的方法，使法律天平平衡的砝码，一是在衡平法上采用禁反言，再是尽其所能寻找有效的约因。这种方法往往产生牵强附会，徒增了人们对法律公正性的怀疑。•1877年英国法官卡恩斯勋爵(LordCairns)审理HughesV.MetropolitanRailwayCo.案时就提出了禁止反言的观念，但并未引起人们的重视。直至1947年，卡恩斯勋爵的观念被英国大法官丹宁(LordDenning)传承，并将其确立为一个法律原则。ParolEvidenceRule•Evidenceofpriororcontemporaneousnegotiationsoragreementsthatcontradictorvaryter