Unit 10路

1
Unit 10 Contracts and Agreements
1.
Definition of Contract

Contract is an agreement between two or more parties that is enforceable by law. A contract
consists of voluntary promises to do or not to do certain things. Promises in a contract are legal
obligations. Contracts include promises to deliver or pay for goods, to perform or pay for labor or
services, to buy or rent land or other property, etc. In general, a contract is a legally binding and
legally enforceable promise, or set of promises, between two or more competent parties. To put it
in another way, a contract is a ―promise or set of promises for the breach of which the law gives a
remedy, or the performance of which the law in some way recognizes as a duty.‖
Reinforcement：Fill in each space with one proper word.
Most contracts are formed with an implicit understanding _____ neither party need perform
_____ the other has completed his or her promised performance. An exception ______ this
understanding occurs when a party has performed most of his or her obligation and the part not
performed is relatively immaterial. The doctrine of substantial performance provides that in such a
case, the _____ party must perform, although he or she may secure money damages to the extent
____ he or she was damaged ____ lack of complete performance.
参考
That/unless/to/opposite/that /by
2. Requirement for a valid contract
A contract is believed to take place when an offer is made and then accepted. All contracts
must be entered into both willingly and freely, and an offer generally cannot be rejected once it
has been accepted.
The first requirement for a valid contract is an agreement. Basically, an agreement consists of
an offer and an acceptance of that offer. Second, the agreement must be supported by
consideration, something bargained for and given in exchange for a promise. Third, the parties
must have capacity, or the legal ability to contract. Fourth, the contract must be based on the
genuine assent of each party. Fifth, the subject matter of the contract must be legal. The legality of
the bargain would be questionable if the parties agreed to do something that would violate a
statute or public policy. Sixth, in some cases a contract must be in proper form.
In summary, to be valid, a contract must embody an agreement:(1)agreed by parties
concerned;(2) supported by consideration;(3) made by parties having the capacity to contract;(4)
based on these parties’ genuine assent; (5) grounded in a legal undertaking, and (6) expressed in
proper form, if applicable.
Reinforcement：Fill in each space with one proper word .
Most simply, a contract is a promise that is enforceable _____ law. Because it is enforceable,
there have arisen in Great Britain, continental Europe, the United States and numerous other areas
complex bodies of contract law to _____ the nature of contracts and the problems associated
_____ their enforcement. A contract is said to _____ when an offer is made and then accepted. All
contracts must be entered _____ both willingly and freely, and an offer generally cannot be
______ once it has been accepted.
参考
By/clarify/ with/ exist/into/rejected
3. Classification of Contracts and Agreements
2

Most contracts are classified as either contracts by specialty or simple contracts. Contracts by
specialty depend for their validity on the formality of their execution. They must be written, sealed
and delivered by the party to be bound by the contract. The usual form of specialty contract is a
covenant.
Simple contracts do not depend for their validity on any particular formality in their
execution but rather on the existence of legal consideration (surrender of a right in exchange for
the promise). A simple contract may be written or verbal or may even be implied from the acts and
conduct of the parties.
Most contracts involve business dealings. Another common case is sales contracts. Sellers of
major appliances such as refrigerators, air conditioners, and television sets often offer extended
warranties. This is a renewable contract for which the buyer pays a fee each year. In return, if the
appliance breaks down, the seller will repair it at no additional cost. Some of these contracts may
be renewed indefinitely. Another common kind of contract is the agreement negotiated between
labor unions and corporations. These contracts contain all the points at issue between a union and
an employer: wages, benefits, cost-of-living adjustment, overtime rules, seniority policy, working
conditions, and more. Labor contracts normally extend over short lengths of time such as one, two
or three years. After they expire, they must be renegotiated in the process called collective
bargaining.
Warranty 保单 extended warranty 期限延长的保单 Seniority policy 资历规定
Collective bargaining 劳资谈判 A binding agreement 有法律约束力的契约
Implied contract 默认合同 Renewable contract可更新的合同 Labor contracts 劳资合同
Trade agreement
In addition to formal agreements between modern states involving in important economic ties
with each other, less formal and durable agreements are related to such matters as tariff rates,
navigation dues, customs formalities, air-transport clearance arrangements, quality restrictions on
trade in specific commodities, regulation of commercial, financial, transportation, and
communication facilities, standards of commercial and maritime law, commercial arbitration,
patents, trademarks, and copyright. Reciprocal trade agreements characteristically provide that
import duties on products originating in the signatory countries be lower than the duties on the
same classes of articles imported from other nations. Although tending to discriminate against
third countries, such special arrangements can be justified when political, economic, and
geographical ties are particularly close, as in the Commonwealth of Nations or among Latin
American countries. The advantages thus obtained are offset in part through operation of the
most-favored –nation clause.

Tariff rates 关税率 customs formalities 海关惯例 navigation dues 航海税
Air-transport clearance arrangement 空运许可证安排 Commercial arbitration 商业仲裁
The Commonwealth of Nations 英联邦成员国 Reciprocal trade agreement 互惠贸易
协定
The signatory countries 签字国 The most-favored-nation clause 最惠国
条款

Treaty
Treaty is a formal agreement between two or more independent governments. It is usually a