Comparative Contract Law — Cases, Text and Materials

by Klimas, Tadas

• ISBN13: 9780890895061
• ISBN10: 0890895066
• Format: Hardcover
• Copyright: 2006-10-01
• Publisher: Carolina Academic Press
• More Book Details
• Purchase Benefits

Summary

This is a casebook with an emphasis on Continental law, in a comparative, American-style format, with many references to U.S. and U.K. law. It illustrates the treatment of the most important topics of contract law by the various civil-law jurisdictions. Each chapter begins with an introductory exposition, comparing and contrasting the law of the various jurisdictions, with numerous examples. This is followed by cases drawn from France, Brazil, Lithuania, Quebec, Russia, and other jurisdictions, as well as some from the United States. Each chapter ends with a set of exercises. The book serves as a good introduction to the principles of European Contract Law, which is the first step taken by Europe towards a pan-European contracts code. It can be used to teach American law students about Continental law in a familiar, case-based, format. It can also be used for teaching comparative contract law to European law students in the Socratic method. A teacher's manual will be available.

Table of Contents

Table of Cases	xix
Foreword	xxiii
Case Analysis Form	xxvii
Of First Things	1	(18)
Law and Legal Systems	1	(5)
Law	1	(1)
Public and Private Law	1	(1)
Legal Systems	1	(1)
Common Law and ``common law''	2	(1)
Civil Law and ``common law''	3	(1)
Codes	3	(1)
Caselaw	3	(2)
Differences between the Common Law and the Civil Law	5	(1)
Terminology	6	(1)
Continental Law: The Juridical Act	6	(4)
The Patrimony	6	(1)
Juridical Acts	7	(1)
Unilateral Juridical Acts	7	(1)
Bilateral Juridical Acts	7	(1)
Conventions	7	(1)
Code Terminology	8	(1)
Juridical Facts	8	(1)
Note on Theory	9	(1)
Contracts and Conventions	9	(1)
Note on Terminology	10	(1)
The Essence of Contract	10	(9)
Binding Nature	10	(2)
Expectation of Performance	12	(1)
Objective Theory of Contract	13	(4)
Duty of Care---Portuguese Law	17	(1)
Study Questions	18	(1)
Exercises---Basic Concepts and Juridical Acts	18	(1)
Formation of Contract	19	(54)
Offer and Acceptance	19	(11)
Simple Offer	19	(1)
Contents of Offer	19	(1)
Acceptance	19	(1)
Convention	20	(1)
Duration of Offer	20	(1)
Offer with a Term	20	(1)
Brief Comparison with Anglo-American Law	21	(6)
Acceptance by Silence	27	(1)
Silence As Positive Act	27	(3)
Revocation	30	(13)
Anglo-American Law	31	(1)
Revocation Effective upon Receipt---American Law	32	(1)
French Law	32	(1)
Major Exception	32	(1)
Revocation Effective upon Dispatch (Emission) or Other Manifestation	33	(1)
Acceptance Effective upon Dispatch	33	(1)
German Law	34	(1)
Principles of European Contract Law	34	(1)
Lithuanian Law	35	(1)
Misdelivery of Revocation or Withdrawal	35	(1)
Revocation of Offers with a Term	35	(1)
French Law	35	(1)
Quebec Law	36	(1)
Anglo-American Law	36	(1)
Principles of European Contract Law	36	(1)
Italian Law	37	(1)
Lithuanian Law	37	(1)
Irrevocable Offer and Option Contract	37	(1)
Revocation of an Offer which Can Only Be Accepted by Performance	38	(1)
Anglo-American Rule	38	(1)
Louisiana Law	38	(1)
Principles of European Contract Law	38	(1)
Lithuanian Law	39	(1)
Revocation of Public Offers	40	(1)
Principles of European Contract Law	40	(1)
Lithuanian Law	40	(1)
Problem of Limited Number	40	(1)
Lithuanian Law	41	(1)
American and German Law	42	(1)
Study Questions	43	(1)
Mailbox Rule	43	(1)
Principles of European Contract Law	43	(1)
Remarks	44	(1)
Late Acceptance	44	(10)
Anglo-American Law	45	(1)
French Law	46	(1)
German Law	46	(1)
Soviet Law	46	(1)
Principles of European Contract Law	46	(1)
Lithuanian Law	47	(6)
Exercises---Formation of Contract	53	(1)
When Offer and Acceptance Differ	54	(19)
Mirror Image Rule	54	(1)
Acceptance with Different or Additional Terms	55	(2)
Last Shot Rule	57	(1)
Battle of the Forms	57	(1)
Example of a Purchase Order	58	(1)
The Knockout Rule	59	(1)
Knockout Rule---American Law	60	(1)
Knockout Rule Exception: Restrictions to the Terms of the Offer or Acceptance	60	(11)
Exercises---Formation of Contract II	71	(2)
Pre-Contractual Liability	73	(10)
Culpa In Contrahendo	74	(1)
French Law	74	(1)
German Law	74	(1)
Lithuanian Law	74	(1)
Polish Law	74	(1)
Letters of Intent	75	(6)
Exercises---Pre-Contractual Liability	81	(2)
Defects of Formation I: Cause	83	(14)
Cause: A Fundamental Requirement	83	(10)
Overview	83	(1)
Classical Theory	84	(3)
French Law	87	(1)
Licitness of Cause	87	(1)
Existence of Cause	87	(1)
Other Systems: No Explicit Requirement of Cause	88	(1)
Russian Law	88	(5)
Impossibility at Formation: Mistake As to Cause	93	(4)
Pre-Existing Impossibility	93	(1)
Quebec Law	94	(1)
Lithuanian Law	95	(1)
Mere Initial Impossibility	95	(2)
Defects of Formation II: Object	97	(30)
Object: A Fundamental Requirement	97	(4)
Overview	97	(1)
Three Types of Object	98	(1)
Explicit and Implicit Codal Requirements of Object	98	(1)
Requirement of Certainty	99	(2)
Indexing	101	(1)
Open Terms and Unilateral Determination	102	(4)
French Law	103	(1)
Solutions in Other Jurisdictions	103	(1)
Indexed Price Terms Revisited---Unilateral Determination	104	(2)
Exercises---Defects of Formation: Object	106	(1)
Indexing and Foreign Currency	106	(3)
Case Study No. 1: Indexing Agreements Squeeze Clients	108	(1)
Permissibility of the Object (Licitness)	109	(1)
Result of Lack of an Object	109	(2)
Exercises---Defects of Formation: Object II	110	(1)
Consideration	111	(10)
Anglo-American Concept of Consideration	111	(1)
Comparison with the Continental System	112	(1)
Executory Contract	112	(1)
Sham or Nominal Consideration	113	(1)
Illusory Promises	113	(1)
No Real Commitment	113	(1)
Pre-Existing Duty Rule	114	(1)
Promises That Bind Without Consideration	114	(1)
Promissory Estoppel	114	(7)
Output Contracts	121	(6)
American Law	122	(1)
Continental Law	122	(3)
Note on Terminology	125	(1)
Exercises---Consideration	126	(1)
Factors Vitiating Consent	127	(62)
Mistake	127	(17)
Mistake	129	(1)
Mutual Mistakes	129	(1)
Unilateral Mistake	130	(1)
The Elements Of An Action For Mistake (Erreur sur la substance)	130	(1)
Lithuanian Law	131	(1)
Inexcusable Mistake	132	(1)
Silence and Mistake: English Law	132	(1)
Silence and Mistake: American Law	132	(1)
Mistake and Impossibility	133	(1)
Void and Voidable	133	(1)
Confirmation	134	(1)
Prescription	135	(9)
Case Study No. 2: Student Government Unratified for Twelve Years?	144	(16)
Study Question	144	(1)
Exercises---Mistake, Misrepresentation, Ratification	144	(2)
Inaccuracy in Communication	146	(14)
Fraud	160	(6)
Incidental and Principal Fraud	160	(1)
English Law-Materiality	161	(1)
Maneuver and Bad Faith	162	(1)
Lithuanian Law	163	(1)
Case Analysis	164	(1)
Breton; Note to Preceding Case	165	(1)
Study Question	165	(1)
Duress	166	(6)
Effect of Signature	172	(7)
Background	172	(1)
The Problem	172	(1)
The Defense	172	(1)
Examples in the Caselaw	173	(1)
Special Considerations for Eastern Europe	174	(1)
Continental Law	174	(5)
Mistake and Regrettable Error	179	(7)
Compared and Contrasted	179	(7)
Mistake and Juridical Acts	186	(3)
Overview	186	(1)
Case Study No. 3: Invalid Bylaws?	186	(1)
Exercises---Non Est Factum	187	(2)
Defenses and Types of Obligations	189	(44)
Types of Obligations and the Defense of Performance	189	(4)
Obligation de moyens	190	(1)
Obligation de resultat	190	(1)
Obligation de garantie	191	(1)
Terminology	191	(1)
Summary and Comment	191	(1)
American Law	192	(1)
The Defense of Impossibility	193	(19)
Continental Law: Force Majeure	193	(2)
American Law: Impracticability	195	(1)
General Approach	196	(1)
Pre-Existing Impossibility	197	(3)
Study Note	200	(2)
Study Question	202	(2)
News Article: Metro	204	(7)
Case Study No. 4: The Case of Bernardas Grazulis	211	(1)
Study Question	212	(1)
Changed Circumstances	212	(21)
Overview: Changed Circumstances	214	(1)
Distinguished from Force Majeure and Mistake	215	(1)
Policy Considerations	215	(1)
French Law	216	(1)
Quebec and Louisiana Law	216	(1)
American and English Law	216	(1)
Principles of European Contract Law	217	(1)
Lithuanian Law	217	(1)
Commentary	218	(1)
Exercises---Changed Circumstances	219	(11)
Exercises---Force Majeure, Impracticability, and Default	230	(3)
Right to Withhold Performance	233	(10)
Overview	234	(1)
Anglo-American Law	235	(2)
Study Questions	237	(4)
Exercises---Right to Withold Performance	241	(2)
Tender and Conditions	243	(26)
Introduction	243	(6)
Order of Performance and Tender	249	(3)
Tender	250	(1)
Contracts with Order of Performance Explicitly Set	251	(1)
Anglo-American Law	251	(1)
Lithuanian Law	252	(1)
Seven Day Rule	252	(2)
The Seven Day Rule	253	(1)
Express Conditions	254	(1)
True Conditions	254	(1)
Study Note	255	(1)
Potestative Conditions	255	(2)
Suspensive and Resolutive Conditions	257	(2)
Impossibility	258	(1)
Purely Potestative Resolutive Conditions	258	(1)
Best Position	259	(1)
Mise en Demeure	259	(2)
French Law	259	(1)
Louisiana Law	260	(1)
Eastern Europe	261	(1)
Attitude towards Waiver and Moratory Interest in Eastern Europe	261	(1)
Time for Performance	262	(7)
Exercises---Tender and Conditions	266	(3)
Alternative Duties	269	(4)
Alternative Duties	270	(1)
Obligations of Liberty: Facultative Obligations	270	(1)
Exercises---Alternative Duties	271	(2)
Specific Performance	273	(24)
Overview	274	(1)
Enforcement	275	(1)
Personal Obligations	276	(1)
Provision in Contract	277	(1)
Payment Obligations	277	(18)
Specific Performance and the Seller of Immovable Property	295	(1)
Exercises---Specific Performance	295	(2)
Damages	297	(16)
Expectation Principle	298	(2)
Comparison with Tort	298	(1)
Expectancy Principle	298	(1)
Reliance Interest	299	(1)
Foreseeability	300	(1)
General Damages	300	(1)
Special Damages	300	(1)
Bad Faith	301	(1)
Efficient Breach	301	(1)
American Law	302	(1)
Lithuanian Law	302	(1)
Moratory Damages	302	(11)
Overview	303	(2)
Moratory Interest and Other Moratory Damages	305	(1)
Exercises---Moratory Damages	305	(8)
Termination of Contract	313	(44)
Causes of Termination	313	(6)
Upon Performance	313	(1)
Upon Expiration Of Term	313	(1)
Upon Mutual Agreement	314	(1)
Release	314	(1)
Unilateral Withdrawal	315	(1)
Upon Material Breach	315	(1)
Substantial Performance Precludes Termination	316	(1)
Express and Implied Essential Conditions	317	(1)
Intentional Non-Performance	317	(2)
Note on Terminology	319	(1)
Methodology of Termination for Material Breach	319	(10)
Overview	319	(1)
Retrospective Systems	319	(1)
Prospective Systems	320	(1)
Termination for Delay	321	(2)
Louisiana	323	(5)
Exercises---Termination	328	(1)
Anticipatory Repudiation	329	(2)
Overview	329	(1)
Repudiation by Conduct	330	(1)
French Law	331	(1)
Netherlands Law	331	(1)
Assurance	331	(16)
Assurance	332	(2)
Table of Permutations	334	(10)
Note	344	(1)
Exercises---Anticipatory Repudiation, Assurance, Cure	345	(2)
Cure	347	(10)
Lithuanian Law	350	(1)
American Law and the PECL	351	(1)
Exercises---Cure	352	(5)
Legal Institutes Which Serve to Secure Performance	357	(62)
Liquidated Damages and Penalties	357	(16)
Overview: Liquidated Damages	358	(1)
Penalties: Compared and Contrasted to Liquidated Damages	358	(1)
Underlying Problem	359	(1)
Penalties and Liquidated Damages under the Lithuanian Civil Code	359	(1)
Lithuanian Civil Code	360	(1)
Exercises---Penalties	360	(12)
Note on Liquidated Damages	372	(1)
Preparatory Agreements	373	(9)
Earnest Money	376	(2)
Escape Clauses	378	(1)
Earnest Money Compared to Advance	379	(1)
Presumption of Earnest Money	379	(1)
Requirement of Form	380	(1)
Study Note	380	(1)
Comparison of the American and Continental Regimes	380	(1)
American Regime of Earnest Money	380	(1)
Continental Regime of Earnest Money	381	(1)
Preliminary Agreements	382	(4)
Introduction	382	(1)
Continental Law	382	(1)
Specific Performance	383	(1)
Louisiana Law	383	(1)
Quebec Law	384	(1)
Purpose	384	(1)
Features of Preliminary Agreements	384	(1)
Letters of Intent: Continental Law	385	(1)
Letters of Intent: American Law	385	(1)
Letters of Intent: Summary	386	(1)
Option Contracts	386	(1)
Overview	386	(1)
Quebec Law	387	(1)
Lithuanian Law	387	(1)
Preliminary Agreements and Earnest Money Clauses	387	(20)
Time Limit	391	(1)
Preliminary Agreements and Specific Performance under Lithuanian Law	391	(1)
Preliminary or Principal Agreement?	392	(1)
Summary	392	(1)
Practice Note	393	(13)
Contract Entered into between Roscin and Percovskis	406	(1)
Advances	407	(4)
Setoff	409	(1)
Advance As Security	409	(2)
Deposits	411	(8)
Anglo-American Law	411	(1)
Continental Law	411	(1)
Conclusion	412	(1)
Exercises---Deposit As Penalty	412	(5)
Exercises---Earnest Money, Preliminary Agreements, Advances	417	(2)
Third-Party Beneficiary Contracts	419	(26)
Introduction	419	(1)
Overview	419	(1)
Privity of Contract	420	(1)
American and Continental Law	420	(1)
General Rule As to Third-Party Beneficiary Contracts	420	(1)
Vesting	421	(1)
Lithuanian Law	421	(1)
Estonian Law	421	(1)
Identification of Third-Party Beneficiary	422	(1)
Rights and Defenses	422	(1)
Enforcement	422	(1)
Defenses	423	(1)
Devolvement of Right to the Creditor	423	(1)
English Law	423	(1)
Addenda	423	(22)
17 Million---The Price of Good Government?	423	(1)
Exercises---Third-Party Beneficiaries	424	(19)
Third-Party Beneficiaries and Tort Liability	443	(2)
Assignment	445	(44)
Overview: Assignments	446	(4)
Background	447	(1)
Anglo-American Law Contrasted with Continental Law	447	(1)
Note on Terminology	447	(1)
Illustration of Rights and Obligations	448	(1)
Illustration of an Assignment	448	(1)
Why Assign a Right?	448	(1)
Similarity to Third-Party Beneficiary Contracts	449	(1)
Payment Direction Not Assignment	450	(1)
Restrictions on Assignment	450	(2)
General Rule	450	(1)
Study Hint: Delectus Personae	451	(1)
Contractual Limitations on Assignment	452	(2)
Overview	452	(1)
American Law and the United Nations Convention on the Assignment of Receivables	452	(1)
English Law	453	(1)
French Law	453	(1)
Commentary on No-Assignment Clauses	453	(1)
Factoring	454	(1)
Overview	454	(1)
Defenses of the Debtor	455	(3)
Overview	455	(1)
American Law and the UN Convention re Defenses	455	(1)
Extent of Counterclaim	456	(1)
Russian and Lithuanian Law Regarding Defenses	456	(1)
Notice of Assignment: Effect on Defenses	457	(1)
Taking Free of Defenses	457	(1)
Liability of the Original Creditor (Assignor)	458	(2)
Inability to Perform	458	(1)
Existence of Underlying Right	459	(1)
Discharge by the Debtor	459	(1)
Successive Assignments by the Same Original Creditor	459	(1)
General Assignment of Contract	460	(29)
Continental and American Law	460	(1)
Exercises---Assignments	461	(28)
Delegation	489	(16)
Introduction	489	(2)
Effect of Delegation As to the Delegating Party	491	(1)
Effect of Delegation	491	(1)
Delegation and Substitution	492	(10)
Exercises---Delegation	502	(3)
Oral Agreements	505	(10)
Introduction	507	(1)
Continental Law: Validity	507	(1)
General Rule	507	(1)
Examples of Valid Oral Agreements under Lithuanian Law	507	(1)
Examples of Agreements which the Law Requires Be in Writing under Lithuanian Law	508	(1)
Consequences of Noncompliance	508	(1)
French Law: Exceptions and Copies	508	(1)
Soviet Law	509	(1)
Written Form Imperatively Required	509	(1)
Anglo-American Law	509	(4)
Exercises---Oral Agreements	513	(2)
Express Language of Contract and Intent of Parties	515	(32)
Integration	515	(11)
Completeness of Written Document	516	(1)
Anglo-American Law: The Parol Evidence Rule	517	(1)
English Law	518	(1)
Principles of European Contract Law	518	(1)
Collateral Agreement	518	(1)
Lithuanian Law	519	(1)
Estonian Law	519	(1)
Eastern Europe	519	(5)
Study Question	524	(1)
Exercises---Integration and Merger	525	(1)
Interpretation	526	(14)
Plain Meaning Rule	528	(1)
Four Corners Rule	528	(1)
Russian Law	529	(11)
Trade Usage	540	(2)
Distinguished from Custom	540	(1)
Soviet Law	540	(2)
Casenote	542	(1)
Prior Dealings of Parties	542	(5)
Exercises---Parol Evidence and Interpretation	546	(1)
Modification	547	(30)
Overview	548	(1)
Anglo-American Law	548	(3)
Rescission and Substituted Agreement	548	(1)
Discharge	548	(1)
Modification Under Anglo-American Law	549	(1)
Pre-Existing Duty Rule	550	(1)
Novation	550	(1)
Uniform Commercial Code	551	(1)
Continental Law	551	(2)
Terminology of Modification and Novation in the Continental Law	552	(1)
Oral Modification of Written Agreements	553	(1)
American Law	553	(1)
Continental Law	553	(1)
French Law	553	(1)
PECL	554	(1)
Lithuanian Law	554	(1)
Written Restriction on Oral Modification	554	(3)
No-Oral Modification Clause	554	(1)
Oral Modification Without Reliance	555	(1)
No Oral Modification Clause---And Reliance	555	(1)
Oral Modification of Written Contracts Under Russian Law	556	(1)
Waiver	557	(20)
Overview	557	(1)
Right to Damages	557	(1)
Waiver by Conduct	558	(16)
Exercises---Modification	574	(3)
Vindication: Title and Rights of Third Parties	577	(30)
Overview	579	(1)
Void Title	579	(1)
Nemo Dat	579	(1)
Entrusting	580	(1)
American Law on Bailment and Entrusting	580	(1)
Voidable Title and Nemo Dat	581	(1)
American Law	581	(1)
English Law	582	(1)
The Continental Regime As to ``Entrustment'' and ``Voidable Title''	582	(1)
Quebec	582	(1)
France	583	(1)
Soviet Law	583	(1)
Soviet Nemo Dat?	584	(1)
Invalid Contract	584	(1)
Entrustment Under Soviet Law	585	(1)
Post Soviet Law	586	(2)
New Lithuanian Rules	588	(1)
Ancillary Matters	589	(16)
Exercises---Vindication	605	(2)
The Revocatory Action and Fraudulent Transfers	607	(32)
The Paulian Action	610	(5)
Theoretical Underpinnings of the Paulian Action	610	(1)
Underlying Concept: The Debtor's Pledge	610	(1)
Who May Bring the Action?	611	(1)
What Is the Effect of a Successful Paulian Action?	611	(1)
Anteriority of the Debt	612	(1)
The Third-Party Defendant	613	(1)
Third-Party Transferees	613	(1)
Good Faith Transfers	614	(1)
Presumptions	615	(1)
The Common Law Approach: Fraudulent Transfers	615	(7)
Transfers Fraudulent As to Present Creditors	615	(1)
Transfers Fraudulent As to Present and Future Creditors	616	(6)
Case Note	622	(1)
Action in Declaration of Simulation	622	(17)
Overview	624	(1)
Comparison with Anglo-American Law	624	(1)
Continental Law	624	(1)
Effect of Counter Letter Between the Parties	624	(1)
Effect of Counter Letter Upon Third Parties	625	(2)
Simulation and Paulian Action	627	(8)
Exercises---Paulian Action	635	(4)
General and Special Contracts	639	(8)
Overview	639	(1)
Soviet Law	640	(1)
Summary	641	(4)
Exercises---General, Nominate, and Special Contracts	645	(2)
Table of Codes	647	(2)
Index	649