Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law UNIT 1: THE LANGUAGE OF CONTRACT LAW I. WHAT IS A CONTRACT? A. Promise, offer and consideration. Read pages 97-100 of El inglés jurídico (Alcaraz 2003). Then, do the following exercises: A.1. Translate the italicized terms in the following paragraphs: 1. Los contratos son acuerdos vinculantes (__________), en los que las partes (__________) pueden ser personas físicas (_________ ________) o jurídicas (____________ ____________ _________), que pretenden crear una relación jurídica (_________ __________), surgida de una oferta (_________) y una aceptación (__________). En ellos ha de mediar una contraprestación (_____________), que no se considera tal si no es a título oneroso (___________). 2. Los tipos de contratos más habituales son el contrato de compraventa (________ _________), el contrato de arrendamiento (__________agreement), el contrato de trabajo (___________ ____________) y el contrato de servicios (___________ ____ _______) 3. Los contratos se extinguen (_______ _________), entre otros motivos, por cumplimiento (__________), por acuerdo de las partes, por novación (__________) o por incumplimiento de contrato (_____________ ___ _________). En este último caso, se puede interponer una demanda (_____ __ _______), a fin de obtener una solución o remedio jurídico (__________), que puede ser, por ejemplo, la resolución (_________), la indemnización por daños y perjuicios (_________) y el cumplimiento específico por sentencia (______________ __________). A.2. Say whether the following statements are true or false.Be prepared to justify your answer. a) Algunos contratos, como el de compraventa de bienes inmuebles (real property), sólo son válidos si se formalizan por escrito (in writing). b) Uno de los tipos más habituales de contrato en Inglaterra es la donación (gift). c) A veces los contratos contienen cláusulas que especifican la cantidad que se ha de abonar en caso de incumplimientos (breaches). d) La novación (novation) es una solución judicial (remedy) impuesta en caso de incumplimiento de contrato (breach of contract). B. Read the following text on the validity of contracts. For a contract to be valid, it must meet the following criteria: Mutual agreement - (see main article offer and acceptance): There must be an express or implied agreement. The essential requirement is that there be evidence that the parties had each from an objective perspective engaged in conduct manifesting their assent, and a contract will be formed when the parties have met such a requirement. (Notice that the objective manifestation requirement means that one need not actually have assented so long as a reasonable person would believe that assent had been granted.) For a contract based on offer and acceptance to be enforced, the terms must be capable of determination in a way that it is clear that the parties' assent was given to the same terms. The terms, like the 1 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law manifestation of assent itself, are determined objectively. Consideration: There must be consideration (see also consideration under English law) given by all the parties, meaning that every party is conferring a benefit on the other party or himself sustaining a recognizable detriment, such as a reduction of the party's alternative courses of action where the party would otherwise be free to act with respect to the subject matter without any limitation. Consideration need not be adequate, e.g. agreeing to buy a car for a penny may constitute a binding contract. (q.v. Chappell & Co Ltd v Nestle Co Ltd [1959] 2 All ER 701. (UK common law)) Competent, Adult (Sui Juris) Parties: Both parties must have the capacity to understand the terms of the contract they are entering into, and the consequences of the promises they make. For example, animals, minor children, and mentally disabled individuals do not have the capacity to form a contract, and any contracts with them will be considered void or voidable. Although corporations are technically legal fictions, they are considered persons under the law, and thus fit to engage in contracts. For adults, most jurisdictions have statutes declaring that the capacity of parties to a contract is presumed, so that one resisting enforcement of a contract on grounds that a party lacked the capacity to be bound bears the burden of persuasion on the issue of capacity. Proper Subject Matter: The contract must have a lawful purpose. A contract to commit murder in exchange for money will not be enforced by the courts. Such contracts are void ab initio. Mutual Right to Remedy: Both parties must have an equal right to remedy upon breach of the terms by the other party Mutual Obligation to Perform: Both parties must have some obligation to fulfill to the other. This can be distinct from consideration, which may be an initial inducement into the contract. Intention to create legal relationship: There is a strict presumption for commercial agreements to be legally bound. Domestic and social agreements are usually unenforceable. (adapted from http://en.wikipedia.org/wiki/Contract) Now, answer the following questions Is it possible to enforce a contract to perform an illegal activity? Is a corporation a person, legally speaking? If a contract does not offer one of the parties the right to seek help from the courts, the contract is not valid. Why is that? Using the Internet, find out… a) the difference between “damages” and “specific performance”, as remedies for breach of contract b) what happened in Carlill v. Carbolic Smoke Ball Company, and why this was a landmark case in contract law C. Match the definitions to the terms provided: binding, consideration, gift, party, void 1. anything given, promised or forborne by a party, in exchange for an undertaking or promise of the other: _________________. 2. obligatory, imposing an obligation upon someone: __________. 3. gratuituous transfer or grant of property: _________. 4. invalid, not binding: __________. 5. person(s) forming one side in an agreement: _________. 2 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law D. Choose one of the following collocations. Only one answer is correct in each case. 1. This agreement shall be _________ upon the parties, their successors, assigns and personal representatives. a) obligatory b) forceful c) unavoidable d) binding 2. The property is sold in "as is" ______________. a) condition b) state c) situation d) status 3. The person signing this Agreement (_______, the “Customer”)…. a) from now on b) from here on c) hereafter d) hereinafter 4. The Agreement describes the terms and _________ applicable to…. a) requirements b) requisites c) conditions d) preconditions 5. The Customer, for good and _________ consideration, hereby agrees to… a) valid b) priced c) valued d) valuable 6. An amount, the __________ of which is hereby acknowledged. a) receipt b) reception c) admission d) admittance 7. The property shall be returned in its present condition, __________ wear and tear excepted. a) understandable b) admissible c) reasonable d) acceptable 8. This agreement shall inure to the ________ of the parties, their successors, assigns and personal representatives. a) benefit b) profit c) advantage d) improvement 9. Contractor may at its ________ engage subcontractors to perform work hereunder a) discretion b) power c) possibility d) discretionality 10. Seller, to the full ______ permitted by law, disclaims any implicit warranties. a) scope b) reach c) extent d) capacity 3 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law II. THE SALE/PURCHASE CONTRACT. A. Read pages 238-243 of El inglés jurídico norteamericano on salepurchase contracts. B. Translate the following fragments from the United Nations Convention on Contracts for the International Sale of Goods. Article 45. (1) If the seller fails to perform any of his obligations under the contract or this Convention, the buyer may: (a) exercise the rights provided in articles 46 to 52; (b) claim damages as provided in articles 74 to 77. (2) The buyer is not deprived of any right he may have to claim damages by exercising his right to other remedies. (3) No period of grace may be granted to the seller by a court or arbitral tribunal when the buyer resorts to a remedy for breach of contract. Article 46. (1) The buyer may require performance by the seller of his obligations unless the buyer has resorted to a remedy which is inconsistent with this requirement. (2) If the goods do not conform with the contract, the buyer may require delivery of substitute goods only if the lack of conformity constitutes a fundamental breach of contract and a request for substitute goods is made either in conjunction with notice under article 39 or within a reasonable time thereafter. The complete text of the Convention can be downloaded from: http://www.uncitral.org/pdf/english/texts/sales/cisg/CISG.pdf The Spanish version is available at: http://www.uncitral.org/pdf/spanish/texts/sales/cisg/CISG-s.pdf Now, compare your translation with the “official” one, and decide whether the differences are merely stylistic ones (i.e. yours would also be an acceptable version) or not. C. Translate the following sentences into English. If you find the task too difficult, on the last page of this lesson there is some help, but TRY to do it first without looking. 1. Entre otras soluciones, la Ley dispone que el vendedor puede pedir una indemnización de los daños y perjuicios si el comprador incumple sus obligaciones. 2. En casos de incumplimiento de contrato, el tribunal de arbitraje no concederá a la parte compradora un periodo de gracia. D. Complete the text, which has been adapted from Black’s Dictionary of Law, using the words and expressions provided. accepted, agreement, breach, consideration, contractual liability, damages, express, implied, intention, obligations, offer, reward, signed, stated, sue, terms, under seal, verbally, voided, writing 4 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law A contract can be defined as “an ____________ between two or more parties to create legal _____________ between them”. Some contracts are made “_________”, or in other words, they are __________ and sealed (stamped) by the parties involved. Most contracts are made __________ or in ________. The essential elements of a contract are: (a) that an _______ made by one party should be _________ by the other; (b) ___________ (the price in money, goods or some other ____________, paid by one party in exchange for another party agreeing to do something; (c) the __________ to create legal relations. The __________ of a contract may be __________ (clearly stated) or ______________ (not clearly __________ in the contract, but generally understood). A __________ of contract by one party of their _________ entitles the other party to ________ for ___________ or, in some cases, to seek specific performance. In such circumstances, the contract may be _________ (in other words, it becomes invalid). III. THE EMPLOYMENT CONTRACT. A. Read pages 126-128, up to “y la aportación al plan de pensiones (pension scheme)”, from El inglés jurídico, and pages 270-278 of El ingles jurídico norteamericano (Ariel), regarding the macrostructure of employment contracts in the United States. . A.1. Translate into English the underlined words and expressions in the following fragments: a) Cuando surgen (________) disputas laborales (_________ ___________), suelen ser los Tribunales de lo Social (_______________ _________) los que resuelven (_________) la demanda (_______/ _________). Sin embargo, las partes (__________) deben tratar previamente de resolverlas mediante la conciliación (______________). b) Las disputas muchas veces son resultado de la extinción (____________) de los contratos, que debe la empresa (__________) notificar (_______ _________) con el tiempo suficiente, tanto si se trata de despidos (_________) como de regulaciones de empleo (_____________). En estos últimos casos, los empleados normalmente tienen derecho a una indemnización por despido (_____________ ___________). c) Cuando los tribunales estiman (___________) que se ha producido un despido improcedente (____________ _________), pueden dictar (________) una de las siguientes medidas: la readmisión (___________), la recolocación o reincorporación (____________) en nuevas condiciones (____ __________ ________), o la indemnización (_________). B. Compare the following clauses of employment contracts in Spain and in the United States: a) 2. Term of Employment. Subject to the provisions for termination set forth below this agreement will begin on __________, 20____, unless sooner terminated. CUARTA: La duración del presente contrato será INDEFINIDA, iniciándose la relación laboral en fecha .... y se establece un periodo de prueba de.... SEXTA: El/la trabajador/a percibirá una 5 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law 3. Salary. The Company shall pay Employee a salary of $_______ per year, for the services of the Employee, payable at regular payroll periods. 4. Duties and Position. The Company hires the Employee in the capacity of ________________________. the Employee's duties may be reasonably modified at the Company's discretion from time to time. retribución total de ........ euros brutos, que se distribuirán en los siguientes conceptos salariales: PRIMERA: El/la trabajador/a prestará sus servicios como ..... incluido en el grupo profesional / categoría / nivel profesional de.... SÉPTIMA: La duración de las vacaciones anuales será de ... 8. Vacation. The Employee shall be entitled to a yearly vacation of _____ weeks at full pay. Y para que conste, se extiende este contrato por triplicado ejemplar en el lugar y fecha a continuación indicados, firmando las partes interesadas. Signed this_____ day of _ 20____. En .... a ..... de ....... de 20... Find suitable equivalents for the following Spanish expressions and formulae: 1. iniciándose la relación laboral en fecha: 2. El trabajador percibirá una retribución total de: 3. El/la trabajador/a prestará sus servicios como: 4. La duración de las vacaciones anuales será de...: C. Translate the following fragments from a training contract from the Law Society (http://www.lawsociety.org.uk) THIS CONTRACT is made on ..... BETWEEN “X” ......................................... [the training establishment] and ........................................................................ [the trainee solicitor]. 1. The purpose of this contract is to set out the principal duties and responsibilities of the training establishment and the trainee solicitor in accordance with the Training Regulations 1990 and “Training trainee solicitors: The Law Society requirements”. 6. This contract begins on ............................................... and continues for two years, subject to the provisions for earlier termination. Salary 7. [The training establishment] will: (a) pay the trainee solicitor a yearly salary of not less than £............ payable by equal monthly instalments; (b) ensure that the Trainee Solicitor’s salary is never less than the minimum prescribed for trainee solicitors in the local law society area where the trainee solicitor is based. 9. The trainee solicitor is employed by [the training establishment] under the terms and conditions of employment which have been supplied but if there is any conflict between those terms and this contract then the terms of this contract prevail. Law Society Requirements 13. [The training establishment] will: a) i) permit the trainee solicitor to have paid leave to attend courses and 6 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law interviews as required by the Law Society; ii) pay all the fees and reasonable expenses in connection with such courses and interviews. b) inform the trainee solicitor of any change: (i) in the Law Society’s requirements relating to this training contract; (ii) of the training principal; c) permit the trainee solicitor to have 20 working days paid holiday in each year of employment in addition to public holidays; d) complete a certificate of training at the end of this contract. An example in Spanish of a training contract (contrato en prácticas) may be obtained from: http://www.inem.es/ciudadano/empleo/contratacion/impresos/pe-176.pdf Can you observe great differences between the English and the Spanish model? What do you think they may be attributed to? D. Translate the following sentences into English. If you find the task too difficult, on the last page of this lesson there is some help, but TRY to do it first without looking. 1. Sin perjuicio de las disposiciones que figuran a continuación, la retribución del abogado en prácticas no podrá ser inferior al mínimo fijado para los abogados en prácticas. 2. Caso de producirse discrepancia entre los términos de este documento y la legislación en vigor, se estará a lo previsto en la legislación. 3. La duración de las vacaciones anuales del abogado en prácticas será de 20 días laborables, además de los días festivos oficiales. IV.Miscellaneous exercises A. Fill in the definition of “negligence" given in the Unfair Contract Terms Act of 1977 (©Crown Copyright; www.legislation.hmso.gov.uk): performance, purposes, terms For the ________ of this Part of this Act, 'negligence' means the breach of any obligation, arising from the express or implied _______ of a contract, to take reasonable care or exercise reasonable skill in the _________ of the contract. B. Using the terms provided, fill in the gaps in the following excerpts from the United Nations Convention on Contracts for the International Sale of Goods. acceptance, bound, contract, offer, offeror, offeree A proposal for concluding a(n) __________ addressed to one or more specific persons constitutes a(n) ________ if it is sufficiently definite and indicates the intention of the _________ to be _______ in case of ________ [...] An offer becomes effective when it reaches the _______ contracts, judgement, law, party, performance, provisions, specific performance 7 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law If, in accordance with the ___________ of this Convention, one ______ is entitled to require ________ of any obligation by the other party, a court is not bound to enter a ________ for ____________ unless the court would do so under its own _____ in respect of similar __________ of sale not governed by this Convention. Bibliography Online resources: http://www.duhaime.org/contract/default.aspx (sobre derecho contractual en general, centrado en Canadá) http://ceds.vu.edu.au/buslaw/glossary.htm (glosario sobre derecho comercial) http://www.ilrg.com/forms/ (formularios contractuales estadounidenses de todos los tipos) On paper: Alcaraz Varó, E., Campos Pardillos, M.A. y Miguélez, C. (2003): “El lenguaje de los contratos (I). El contrato de compraventa. Las marcas”, “El lenguaje de los contratos de arrendamiento y de trabajo” y “El lenguaje del comercio” en El inglés jurídico norteamericano. Barcelona: Ariel. Campos Pardillos, Miguel Ángel (2003): "La traducción de los contratos y el papel del traductor en el salto tipológico ¿qué traducimos, cómo y para qué?", págs. 427-440 en Ortega Arjonilla, Emilio (ed.): Panorama actual de la investigación en traducción e interpretación. Granada: Atrio. Corpas Pastor, Gloria (2003): "TURICOR: compilación de un corpus de contratos turísticos alemán, español, inglés, italiano para la generación textual multilingüe y la traducción jurídica”, págs. 373-384 (Vol. 2) en Ortega Arjonilla, Emilio (ed.) 2003. Panorama actual de la investigación en traducción e interpretación. Granada: Atrio. Paneque Arana, Silvia (1996): "Propuesta de traducción de un contrato en inglés al español", pp. 259-288 en San Ginés Aguilar, Pedro & Ortega Arjonilla, Emilio (eds.) Introducción a la traducción jurídica y jurada (inglés-español). Granada: Comares. Peñarroja i Fa, J. y Guidini, C.P. (1996): "Casos prácticos de traducción jurada (inglés-español) de documentos jurídicos (judiciales y contractuales)", págs. 203-244 en San Ginés Aguilar, Pedro & Ortega Arjonilla, Emilio (eds.), Introducción a la traducción jurídica y jurada (inglés-español). Granada: Comares. Translation aids (section II, exercise C) 1.Amongst other __________, the Act _______ that the seller may _________ damages if the _________ does not / fails to ___________ his _________. 2. _______ there has been a __________ of _________, the arbitral _________ may not _______ the buyer a _________ of grace. 8 Dr. Miguel A. Campos Legal English Unit 1 – The Language of Contract Law Translation aids (section III, exercise D) 1._______ to the __________ below, the Trainee Solicitor’s ________ shall never be _______ than the minimum __________ for Trainee Solicitors. 2. If there is any __________ between the terms _________ and the _______ in ______, the law shall _______. 3. The Trainee Solicitor will have 20 _______ days’ paid _______ in _______ to _______ holidays. 9