...Future contract #1 Ostrich meat 1. This is a future contract of 60,000 lbs. ostrich meat traded in $0.0001/lb. in Dec., Mar., Jul. and Sep. The seller has to deliver USDA frozen 75-100 pound Grade A ostrich carcasses. The daily Price cannot be $0.05/lb. above or below the previous day’s settlement price. 2. i) According to world – ostrich organization (http://www.world-ostrich.org/demand.htm), the current demand for ostrich meat is way far more than supply. Therefore, there will be a constantly increase in the price of ostrich meat. Investors are reluctant to take short positions of ostrich meat futures; however, there would be a lot of people willing to take long positions. Thus, the long positions will be in far excess of short positions. Was the market exist, it would not be balanced. ii) Breeders of the ostrich meat, such as rancher, who tend to avoid the risk of ostrich disease or to offset the rising of feed price, will undertake short position of the future contract. The users of the ostrich meat, such as the food processor, who expect the price to rise, will undertake long position. For example, an investor who expects the ostrich meat to be in excess of demand will long the contract. 3. i) The deliverable grades of the contract are specific, it includes the weight, grade, and the pack standard of the meat, this will help the contract to be better executed. ii) The daily price limit of each contract is 5 cents per pound ($3,000/contract) above or below...
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...using various kind of sanction. While talking about law we should have a clear idea about three basic concept power, fascination & importance.Sources of law are also importance which can be constitutions, statue, common law, administrative law, equity etc. In business world, we use different kinds of law & law of contracts is one of the most widely used business law which is basically used to understand future business related The Aspects of Contracts & Negligence for Businessissues in more predictable manner by people engage in contracts. Contract is basically a promise that gives the official commitment that the law will be enforced.Judicial activism, which creates law to be less predictable & more flexible, & judicial restraint, which makes law more predictable & less flexible, is two important issues closely related to contracts that need to be defined properly. Task 1: P1- The essential element of valid contracts in a business context: A contract, to be valid in a business context, must have some essential elements which can be basically classified in four major categories- ð Agreement- In every contract, there must be an agreement between two parties where one party needs to make any kind of valid offer & the other party needs to accept the offer made. ð Consideration- To be valid, every contracts must have some consideration on the basis of which they engage in the contract. There must be exchange of something. The subject matter of the contract may vary from...
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...Aspects of Contract and Negligence for Business *Unit abstract:- Introduction to the law of contract, with a particular emphasis on the formation and operation of business contract. Business contract shall be defined within the context of law of contract and business law . The former is narrower and the later is wider but all its components are subject to the essential elements of contract. Business law which is also known as mercantile law refers to laws governing and regulating trade , industry and agriculture . It includes laws relating to Contracts , Sale of Goods , Partnership , Companies , Negotiable Instruments , Insolvency , Carriage of Goods , Arbitration..etc. The difference between the law of Tort and the law of Contract is based on obligations and liabilities . In tort the obligations are imposed by law while in contract the obligation of the parties are created by their own free will and mutual consent. Key questions : 1.What are ...
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...CONTRACTS Stages in the life of a contract: 1. Preparation/Generation 2. Perfection/Birth 3. Consummation/Death Characteristics of Contracts: (ROMA) 1. Relativity (Art. 1311) 2. Obligatoriness & Consensuality (Art. 1315) 3. Mutuality (Art. 1308) 4. Autonomy (Art. 1306) Stipulation pour Autrui - stipulation in favor of a 3rd party. Requisites: 1. The stipulation must be part, not whole of the contract; 2. the contracting parties must have clearly and deliberately conferred a favor upon a 3rd person; 3. the 3rd person must have communicate his acceptance; 4. neither of the contracting parties bears the legal representation of the 3rd party. General Rule: Contracts (except real contracts) are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause. Except: Acceptance by letter or telegram which does not bind the offerror except from the time it came to his knowledge. Theories applied to perfection of contracts: 1. Manifestation theory - the contract is perfected from the moment the acceptance is declared or made; 2. Expedition theory - the contract is perfected from the moment the offeree transmits the notification of acceptance to the offerror; 3. Reception theory - the contract is perfected from the moment that the notification of acceptance is in the hands of the offerror; 4. Cognition theory - the contract is perfected from the moment the acceptance comes to...
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...An offer made in jest, where a reasonable person would conclude that it was made in jest, cannot result in a contract. 4. Generally, which of the following will not automatically terminate an open offer? a. Death of the offeror. b. Death of the offeree. c. Changed economic circumstances. d. Destruction of the subject matter of the contract. 5. “Legal Detriment” in the context of consideration means: a. Giving up an existing legal right. b. Taking on a new legal duty. c. Giving up an existing legal right or taking on a new legal duty. d. Being found guilty in a criminal case. 6. T F Generally, a unilateral mistake does not allow either party to rescind the contract. 7. T F The primary goal of compensatory damages is to place the parties in the position that they were in prior to the formation of the contract. 8. Where two parties contract for the purchase and sale of an ordinary item, such as a desk, that unknown to both parties is a rare and valuable example of that item, this is: a. A unilateral mistake. b. A case of fraud in the inception. c. A mutual mistake of fact. d. A mistake of value, but not a mistake of fact. 9. Which of the following best describes duress? a. A situation where a trust relationship has been violated in forming a contract. b. A situation...
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...DERIVATIVES A derivative is a financial instrument - or more simply, an agreement between two people or two parties - that has a value determined by the price of something else (called the underlying). It is a financial contract with a value linked to the expected future price movements of the asset it is linked to - such as a share or a currency. There are many kinds of derivatives, with the most notable being swaps, futures, and options. However, since a derivative can be placed on any sort of security, the scope of all derivatives possible is nearly endless. Thus, the real definition of a derivative is an agreement between two parties that is contingent on a future outcome of the underlying. Some of the widely known underlying assets are: * Indexes (consumer price index (CPI), stock market index, weather conditions or inflation) * Bonds * Currencies * Interest rates * Exchange rates * Commodities * Stocks (equities) Categorization Derivatives are usually broadly categorized by the: * relationship between the underlying and the derivative (e.g., forward, option, swap) * type of underlying (e.g., equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives or credit derivatives) * market in which they trade (e.g., exchange-traded or over-the-counter) * pay-off profile (Some derivatives have non-linear payoff diagrams due to embedded optionality) Another arbitrary distinction is between:...
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...parties involved: who is a plaintiff – defendant; applicant – respondent * What has happened (the sequence of, for the case, important events)? 6. APPLICABLE LAW: * Which law has to be applied on this case * Explain the relevant rules (Articles) * What does this article regulates/The purpose of this article 7. POSITION AND ARGUMENTS OF THE PARTIES * Explain the main arguments and reasoning of the parties in this Court Case: * What is a point of view of each party? Explain! * What kind of reasoning each party follows? * Make link with the theory or with case law if mentioned in the case 8. FINDING OF THE COURT * Explain the REASONING taken by the COURT: * How did the Court use different views about the important phenomena and why? * What kind of (theoretical) approach(es) did the Court reviewed/investigate * What kind of different court decisions (that are relevant for the case) * Make...
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...Article 1458: Contract of Sale By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent. A contract of sale may be absolute or conditional. Essential Requisites The contract of sale, being a contract, has the same requisites, namely, consent, object, and cause. 1. Consent - Also called meeting of the minds. mutual agreement, or consensus ad idem. It essentially refers to a situation where the two parties of the contract has a mutual understanding in the formation of the contract of sale. This essentially means that there is consent in the part of the seller to transfer ownership of the determinate thing and in the part of the buyer to pay the equivalent price. Note that both of the parties must have the legal capacity to give their consent. 2. Object - This is the subject matter of the contract. It must be determinate or capable of being determinate. 3. Cause - This refers the price, in terms of money or its equivalent. Kinds of contract of sale 1. Absolute - This refers to a contract of sale that is not subject to any condition or does not require any condition for the transfer of ownership. 2. Conditional - This refers to a contract of sale that contemplates contingency, or is subject to a condition. It follows then that the delivery of the determinate thing does not necessarily transfer ownership, unless the...
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...Introduction Contract Management and Negotiation Contract management is the management of contracts made with, vendors, employees, partners, or customers. The personnel involved in Contract Management required to support, negotiate and manage effective contracts are expensive to train and retain. It includes negotiating the terms and conditions in contracts and ensuring that the terms and conditions are complaint. It also includes agreeing on and documenting any changes or amendments that may arise during its implementation or execution. Contact Management can be summarized as the process of efficiently and systematically managing creation of contract, its respective execution, followed by analysis in order to get best possible financial and operational performance while minimizing risk. Commonly commercial contracts include purchase orders, employment letters, utility contracts & sales invoices. These type of complex contracts are generally necessary for highly regulated goods or services, construction projects, goods or services with detailed technical specifications, intellectual property (IP) agreements & international trade etc. Types of Contracts Contracts under Seal: Traditionally, a contract was an enforceable legal document only if it was stamped with a seal. The seal represented that the parties wanted the agreement to have legal consequences. It was not meant to give legal benefit or detriment to any party, since the seal was a symbol of the acceptance of the...
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...CONTRACTS Stages in the life of a contract: 1. Preparation/Generation 2. Perfection/Birth 3. Consummation/Death Characteristics of Contracts: (ROMA) 1. Relativity (Art. 1311) 2. Obligatoriness & Consensuality (Art. 1315) 3. Mutuality (Art. 1308) 4. Autonomy (Art. 1306) Stipulation pour Autrui - stipulation in favor of a 3rd party. Requisites: 1. The stipulation must be part, not whole of the contract; 2. the contracting parties must have clearly and deliberately conferred a favor upon a 3rd person; 3. the 3rd person must have communicate his acceptance; 4. neither of the contracting parties bears the legal representation of the 3rd party. General Rule: Contracts (except real contracts) are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause. Except: Acceptance by letter or telegram which does not bind the offerror except from the time it came to his knowledge. Theories applied to perfection of contracts: 1. Manifestation theory - the contract is perfected from the moment the acceptance is declared or made; 2. Expedition theory - the contract is perfected from the moment the offeree transmits the notification of acceptance to the offerror; 3. Reception theory - the contract is perfected from the moment that the notification of acceptance is in the hands of the offerror; 4. Cognition theory - the contract is perfected from the moment the acceptance comes to...
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...GUJARAT UNIVERSITY SYLLABI OF THREE YEARS LL.B. PROGRAMME WITH CREDIT BASED SYSTEM (As prescribed by the BAR COUNCIL OF INDIA and as per the Rules of Legal Education, 2008) Effective from the academic year 2011-12 THREE YEARS’ LL.B. POGRAMME First LL. B. Semester – I FIRST LL.B. - SEMESTER 1 (MONSOON) PER WEEK CORE COURSE 101 SUBJECTS Law of Tort including MV Accident And Consumer Protection Laws Criminal Law Paper – I (General Principles of Penal Law) Criminal Law Paper – II (Specific Offences) Law of Contract Special Contract Constitutional History of India Use of Law Journals and Legal Software LECTURES 4 OTHERS 1 TOTAL 5 CREDITS (SEM)29 5 CORE COURSE 102 CORE COURSE 103 CORE COURSE 104 CORE COURSE 105 FOUNDATION 106 F SOFT SKILL 107 K 4 4 4 4 1 1 1 1 1 1 1 1 5 5 5 5 2 2 5 5 5 5 2 2 1 Semester – I Monsoon Semester CORE COURSE 101 : LAW OF TORT INCLUDING MV ACCIDENT AND CONSUMER PROTECTION LAWS Objectives of the course : With rapid industrialization, tort action came to used against manufacturers and industrial unit for products injurious to human beings. Presently the emphasis is on extending the principles not only to acts, which are harmful, but also to failure to comply with standards that are continuously changing due to advancement in science and technology. Product liability is now assuming a new dimension in developed economics. In modern era of consumer concern of goods and services, the law of torts has...
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... 3. KINDS OF ARTICLE 1458 4. ARTICLE 1475 5. ARTICLE 1476 6. CHARACTERISTICS 7. ARTICLE 1868 8. DIFFERENCE CONTRACT OF SALE FROM CONTRACT / AGENCY TO SELL 9. REQUISITES CONCERNING OBJECT OF A CONTRACT OF SALE 10. WHEN AN OBJECT OF A CONTRACT OF SALE IS CONSIDERED “DETERMINATE?” 11. WHAT KINDS OF THINGS MAY BE OBJECTS OF A CONTRACT OF SALE? 12. WHAT IS CONTRACT FOR PIECE OF WORK? 13. CONTRACT OF BARTER 14. DISTINGUISH BETWEEN “CONTRACT OF SALE” FROM “CONTRACT OF BARTER” 15. WHEN IS PRICE CONSIDERED CERTAIN – ARTICLE 1469 / 1472 16. WHAT IS THE EFFECT IF THW PRICE IS FIXED BY ONE OF THE CONTRACTING PARTIES? 17. ARTICLE 1469, 1472,1473,1474 18. WHAT IS THE EFFECT OF “GROSS INADEQUENCY OF PRICE” IN A CONTRACT OF SALE? 19. • WHAT IS THE EFFECT OF “PRICE SIMULTATION” IN A CONTRACT OF SALE? 20. KINDS OF SIMULTATIONS 21. SALE BY AUCTION 22. WHAT ARE KINDS OF DELIVERY 23. DIFF. FORMS/KINDS OF CONSTRUCTIVE DELIVERY/OBLIGATION OF BUYER 24. WHAT IS “EARNEST MONEY” 25. ARTICLE 1483, 1484, 1489, 1490, 1491 26. ARTICLE 1493, 1494, 1495, 1497-1501 27. WHAT ARE THE KINDS 28. WHAT IS PUBLIC INSTRUMENT 29. WHAT ARE THE KINDS OF WARRANTIES 30. OBLIGATIONS OF BUYERS/ VENDEE 31. BREACH OF CONTRACT OF SALE/ OF GOOD 32. REMEDIES OF THE BUYER AS AGAINST THE SELLER IN CASE OF BREACH OF WARRANTIES 33. HOW IS CONTRACT OF SALE DISTINGUISHED? 34. WHAT ARE CONSIDERED EQUITABLE MORTAGE INSTEAD OF CONTRACT OF SALE ...
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...TITLE 2 CHAPTERS 1 Limitations on contractual stipulations * Law * Police power Classification of contracts according to its name or designation * Nominate contract * Innominate contract Kinds of innominate contract * I give that you may give * I give that you may do * I do that you may give * I do that you may do Rules governing innominate contracts * The agreement of the parties * Provisions of the Civil Code on obligations and contracts * Rules governing the most analogous contracts * Customs of the place Persons affected by the contract * General rule * Exceptions * By their nature * By stipulation * By provision of law Cases when strangers or third persons affected by a contract * Contracts containing a stipulation in favour of a third person * Contracts creating real rights * Contracts entered into to defraud creditors * Contracts which have been violated at the inducement of a third person Classes of stipulation pour autrui * Those where the stipulation is intended for the sole benefit of such person * Those where an obligation is due from the promise to the third person which the former seeks to discharge by means of such stipulation, as, for instance, where a transfer of property is coupled with the purchaser’s promise to pay a debt owing from the seller to a third person. Requisites of stipulation pour autrui * Contracting parties by their stipulation must have clearly...
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...Breach of the Contract and Remedies for It Breach of the contract is a situation when buyer or seller does not perform its obligations those are mentioned in the contract. By this way, there are some remedies for breach and the party which one does not fulfill his contractual promise should compensate all damages after breach. The main types of breach of contract are minor, material, fundamental, and anticipatory. Minor is a breach of contract that is less severe than a material breach and it gives the harmed party the right to sue for damages but does not usually excuse him from further performance. That means when a party to the contract fails to perform a part of a contract and the fail is very small and all parties can otherwise fulfil any remaining contractual obligations very easily without any consequences. Paul and Bill, two business partners, hire SevenSeas, Inc. to build them a boat. The contract says that SevenSeas will build the boat according to Paul and Bill’s specifications and that Paul and Bill will pay SevenSeas $2 million. One of the specifications that Paul and Bill lay out is that the boat must contain bullet-proof windows. SevenSeas builds the boat exactly according to specifications except for the windows, for which SevenSeas accidentally uses ordinary glass. Using the guidelines laid out above, the court would most likely rule that SevenSeas’ breach was minor: SevenSeas has basically finished performance, the breach was accidental, Bill and Paul...
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...1. General Conditions Under Article 1793 of the Civil Code for the Federal District and 7524 for the State of Mexico: “A kind of agreement that produces or transfers rights and obligations”. So we can say that a commercial contract is an agreement between two or more wills that creates or transfers rights and obligations of a commercial nature, an agreement of 2 or more wills on the production or transfer of rights and obligations, requiring that these wills have an outward manifestation with expressed or implied consent. Their legal nature is based on the presence of a dealer on any of the parties, due to its purpose being the industry, commerce or for the commercial mater of the object to which it refers. Article number 1794 (of the Civil Code for the Federal District) requires consent and an object in order for the contract to exist. Under articles number 1825 and 1826 the object must exist in nature, be determined or determinable and be in commerce (future objects may be subject of contracts as well). Usage and custom is defined as the result from the practice of traders so that they can become considered true law. Their uniform and continuous practice, make rules to be observed as existing law, but they cannot repeal mercantile laws themselves and be contrary to the principles of public policy. The practice is considered a source of DM autonomous and does not need the recognition of the legislator or judge, and changes to the wording of the new social needs. (Cco....
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