The performance of contractual obligations

Contract is a promise enforceable in law. The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent of two or more persons, one of them usually making an offer and another accepting. If one of the parties fails to keep the promise, the other is entitled to legal recourse. The law of contracts considers such questions as whether a contract exists, what the meaning of it is, whether a contract has been broken, and what compensation is due the injured party. Contract law is the product of a business civilization. Contract law allows contractual relations to be adjusted when they have been thrown out of balance by unforeseen circumstances. The task of adjustment is relatively easy in cases in which both parties made a mistake. The problem of mistake becomes more intractable when the error is chargeable to only one party. Catastrophic events such as inflation, political upheaval, or natural disasters may upset the economy of a contract. [Political upheaval is a very big change connected with the government or public affairs of a country that often causes problems.] In the case of natural catastrophes, relief is frequently available under theories of force majeure and “act of God”. [Force majeure is an event that cannot be reasonably anticipated or controlled. Act of God is an event that is caused by natural forces, such as a storm, flood, or fire, which you cannot prevent or control.] When the circumstances are economic in their nature, as with severe inflation or deflation, a solution is difficult to find. [Inflation is an increase in the volume of money in circulation relative to available goods and services resulting in a continuing rise in the general price level. Deflation is the process of reducing the amount of money in circulation in order to lower or keep steady the prices of goods.] A party who benefits from inflation in one contractual relation may suffer from it in another. A general readjustment in contracts would be enormously complicated and time-consuming and would interject an undesirable element of uncertainty into business activity. Only under exceptional circumstances – usually in the form of special legislation – are contractual relations readjusted.

VII. Restore the word order in the following statements.

1) Contractual obligations of balance by unforeseen may be thrown out circumstances. 2) Contract law contractual obligations to be allows readjusted. 3) Only are contractual obligations under exceptional circumstances readjusted. 4) Contractual obligations in the form of special legislation are usually readjusted.

VIII. Agree or disagree with the following statements.

1) Contract law allows contractual relations to be adjusted when they have been overbalanced by unforeseen circumstances. 2) The task of adjustment is relatively difficult in cases in which both parties made a mistake. 3) The problem of mistake becomes more flexible when the error is chargeable to only one party. 4) Bad relationship between two parties may upset the economy of a contract. 5) When the circumstances are natural, a solution is difficult to find. 6) Only under usual circumstances are contractual relations readjusted.

IX. Translate the following words and phrases from Russian into English.

Относимый на счет; непредвиденное обстоятельство; контрактные обязательства; сторона в договоре; политический переворот; стихийные бедствия; расстраивать; структура; доступный; форс-мажор; предвидеть; естественные силы; предотвращать; инфляция; освобождение от обязанностей; страдать от; переделка; отнимающий много времени; вставлять; нежелательный; неуверенность; контрактные отношения; денежное обращение; выполнение; договорный; приводить в порядок; вывести из равновесия; урегулирование; относительно; неподатливый; ошибка; деловая активность; исключительное обстоятельство; законодательство; переделывать; дефляция; решение; относительно; иметь своим результатом; продолжающийся рост; уровень цен; извлекать пользу.

X. Complete the following statements. Retell the text “The performance of contractual obligations”.

1) Contract law allows … 2) The task of adjustment is … 3) The problem of mistake becomes … 4) Catastrophic events are … 5) Catastrophic events may upset … 6) In the case of … relief is … 7) When the circumstances are … a solution is … 8) A party who benefits from … 9) A general readjustment in contracts would be … and would interject … 10) Contractual relations are readjusted only under … and in the form …

Санкции за невыполнение контрактов

Study the words and the word-combinations.

make available — предоставлять;

fail [feɪl] to perform — не удаваться совершить;

money damages ['mʌni 'dæmɪdʒɪz] — денежная компенсация ущерба;

erasure [ɪ'reɪʒǝ] — уклонение;

damages — компенсация за убытки;

occur [ǝ'kǝ:] — происходить;

punitive ['pju:nɪtɪv] — карательный;

award [ǝ'wɔ:d] — присуждать;

seek damages — требовать возмещения убытков;

restitution [restɪ'tju:∫ǝn] — возвращение утраченного;

breach [bri:t∫] – нарушать;

expectancy [ɪks'pektǝnsi] — ожидание;

reward [rɪ'wɔ:d] — вознаграждать;

anticipate [æn'tɪsɪpeɪt] — предвидеть;

seek a sanction — требовать применения сакции

I. Read and translate the text.