Contract law

relates to making and enforcing [egzekwowanie, wykonanie] agreements.  Both companies and customers use contracts for many transactions such as buying and selling goods, licensing products or activities, employment, etc.  A contract must be valid [ważny, wiążący] if you want to turn to a court to enforce it. It must contain certain parts and types of contract clauses.

A valid contract has four parts:

Offer

One party must make an offer where it states the terms that they want the other party to agree to.

Acceptance

A party must accept another party’s offer to make a contract complete. If they don’t accept and propose different terms, there’s no contract, and their terms are a counteroffer.

Consideration

A valid contract means that each party must give something up, e.g. in case of sales contract, one party agrees to give up money, and the other party agrees to give up the object of sale.

Mutual intent to enter into an agreement

Both parties must intend to be bound [związane umową] by the contract. A statement of intent does not mean the parties have a mutual agreement to enter into a contract.

Types of contract clauses

Try to match these types of contract clauses with their definitions, then check your answers below:

 Assignment        Consideration       Force Majeure       Liquidated Damages / Contractual Penalty     Entire Agreement      Severability      Termination

1. Clause stating that the written terms of an agreement may not be varied by prior or oral agreements because all such agreements have been consolidated into the written document
2. Clause created to protect against failures to perform contractual obligations caused by events beyond the party’s control such as natural disasters, wars, strikes, etc.
3. Clause stating when and under which circumstances the contract may be terminated
4. Clause stating the cause, price, etc. that makes one party to enter into an agreement
5. Clause stating an amount agreed on by the parties as the compensation a non-breaching party should receive if the other party breaches the contract
6. Clause prohibiting or permitting assignment under certain conditions
7. Clause stating that if one or more provisions of the agreement are unenforceable, the rest of agreement remains in force

Key/Glossary:

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