PART 1 (CHAPTER 4)

Question 1

Contract

Answer 1

agreement of wills between 2 people or more

Question 2

Principle of contractual freedom

Answer 2

abilities of parties to bargain and create the terms of agreement as they desire without outside interference from the government

Question 3

Limitations on principle of contractual freedom

Answer 3

• both parties are subject to a legal obligation or duty to contract
• in some cases they are prevented from contracting with certain people
• in some cases, they are dependent on someone’s consent

Question 4

Fundamental principles of Contract Law: Freedom of form principle

Answer 4

the parties are free to choose the form of the contract and that the contract is binding irrespective of its form

Question 5

Fundamental principles of Contract Law: Principle of good faith

Answer 5

to deal honestly and fairly with each other, and to refrain from taking an unfair advantage

Question 6

Fundamental principles of Contract Law: Principle of the binding force of contracts

Answer 6

it keeps the people bound to their contract, even if they no longer wish to honor their contractual engagements (if the contract is for 5 years, you will keep honoring it until then)

Question 7

The principle of binding force unfolds three sub-principles

Answer 7

• Principle of exact and punctual compliance: contract must be complied with, and obligations must be fulfilled
• Principle of intangibility of the content: the content of a contract is intangible, and can only be modified with the agreement of both parties
• Principle of irrevocability: the contract can only be terminated with the consent of both parties

Question 8

Typical or named contracts

Answer 8

provided for and regulated by law, such as purchase and sale, donations, partnerships, provisions of services, lease, loan, mandate or deposits

Question 9

Atypical or unnamed contracts

Answer 9

proper name assigned by law, they do not have specific legal regulations

Question 10

Mixed contracts

Answer 10

contracts in which the rules of two or more businesses fully or partially regulated by law are incorporated in the same contract

Question 11

Freedom of stipulation

Answer 11

the parties enjoy the freedom to stipulate the contract

Question 12

Freedom to select the type of contract

Answer 12

the parties enjoy the right to choose the contract to be entered into

Question 13

Freedom to enter into a contract

Answer 13

the parties enjoy the freedom to decide whether or not to enter into a contract and to choose the other party

Question 14

Freedom to establish the content of the contract

Answer 14

It is the freedom to select the type of contract and freedom of stipulation condensed