Contract Law

"Life has two rules: 1. Never give up 2. Always remember rule number 1".

Activity 1. Listening Comprehension - Overview of Contract Law

Objective: To improve listening comprehension and vocabulary related to Contract Law.

Task 1. Answer the questions:

What comes to mind when you hear the term "contract"? Give some examples of contracts you encounter in your daily life.
Have you ever experienced a situation where a contract was broken or not fulfilled? (No need to share details, just yes/no). What do you think should happen in those situations?
What do you think are the most important things to consider before signing a contract?
Why do you think "Contract Law" is an important subject for lawyers to study?

Task 2. Watch the first part of the video. Are the sentences true (T) or false (F)?

1) Contract law is important because it helps ensure that agreements can be enforced.

2) The author believes that without contract law, people would feel safe entering into agreements.

3) Creating a contract encourages parties to think carefully about the terms of their agreement.

4) If a party breaches a contract, they can face criminal charges according to contract law.

5) Contract law originated from a system called common law, which is based on English traditions.

6) A court can require a breaching party to compensate the other party for their losses.

7) The author states that contract law is not necessary for business transactions.

The first part

Contract Law 1.mp4

The second part

Contract Law 2.mp4

Task 3. Watch the second part of the video and choose the best answer (A-D).

Activity 2. Case Study Analysis

Objective: To analyze a contract dispute, identify and understand key contract clauses, and apply legal principles to a practical scenario, improving reading comprehension, analytical skills, and legal English vocabulary.

Task 1. Individual Analysis & Written Report + Group Discussion.

Stages of the Task

Individual Analysis (45 minutes)

Students individually read the case and the provided contract excerpts.

They then write a short report (250-300 words) answering the following questions:

1) Summarize the key facts of the case.

2) Identify and define the following contract clauses from the excerpts:

Force Majeure
Indemnification
Termination Clause
Governing Law

3) Explain how each clause might apply to the specific situation in the case study. For example, does the Force Majeure clause protect the seller in this situation? Why or why not?

4) In your opinion, who is likely to win the dispute, and why? (Base your answer on the contract clauses and the facts of the case).

Group Discussion (15 minutes)

After completing their individual reports, students participate in a small group discussion (virtual breakout rooms) to compare their findings and arguments.

They should discuss any points of disagreement or uncertainty and try to reach a consensus on the likely outcome of the case.

Case: GlobalTech Solutions v. AgriCorp Farms

Summary: GlobalTech Solutions (GlobalTech) entered into a contract with AgriCorp Farms (AgriCorp) on January 1, 2024, to supply AgriCorp with specialized irrigation equipment by June 1, 2024. AgriCorp needed this equipment to ensure the successful irrigation of their corn crops during the crucial summer growing season. The contract was valued at $500,000.

Due to a sudden and unexpected global semiconductor shortage, caused by a series of factory fires in Taiwan and compounded by international trade restrictions, GlobalTech was unable to obtain the necessary components to manufacture the irrigation equipment on time. GlobalTech notified AgriCorp on May 15, 2024, that it would be unable to deliver the equipment by the agreed-upon date.

AgriCorp claims that GlobalTech has breached the contract and is seeking damages for lost profits due to crop failure caused by the lack of irrigation equipment. GlobalTech argues that the Force Majeure clause in the contract excuses its non-performance due to the unforeseen and unavoidable circumstances of the semiconductor shortage.

Relevant Contract Excerpts:

(1) Force Majeure: "Neither party shall be liable for any failure or delay in performance of its obligations under this Agreement to the extent such failure or delay is caused by fire, flood, earthquake, elements of nature or acts of God, acts of war, terrorism, riots, civil disorders, rebellions or revolutions, epidemics, pandemics, quarantine restrictions, strikes or lockouts, shortages of raw materials or components which are beyond the reasonable control of the party affected, and any other cause beyond the reasonable control of such party, occurring without its fault or negligence and which it is unable to prevent by the exercise of reasonable diligence."

(2) Indemnification: "AgriCorp Farms shall indemnify, defend, and hold harmless GlobalTech Solutions, its officers, directors, employees, and agents from and against any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to AgriCorp's use of the irrigation equipment, except to the extent caused by GlobalTech's gross negligence or willful misconduct."

(3) Termination Clause: "This Agreement may be terminated by either party upon thirty (30) days written notice if the other party materially breaches any provision of this Agreement and fails to cure such breach within the thirty (30) day notice period. GlobalTech may also terminate this agreement if AgriCorp fails to pay any invoice within sixty (60) days of the invoice date."

(4) Governing Law: "This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of laws principles."

Assessment Criteria (Case Study Analysis Report):

Accuracy of Summary (15%): Correctly summarizing the key facts of the case.
Definition of Clauses (30%): Providing accurate and complete definitions of the key contract clauses.
Application of Clauses (30%): Explaining how each clause relates to the specific facts of the case and demonstrating an understanding of their potential impact.
Legal Reasoning (15%): Providing a well-reasoned argument for who is likely to win the dispute, based on the contract clauses and the facts presented.
Clarity and Grammar (10%): Writing in clear, concise, and grammatically correct English.

Assessment Criteria (Group Discussion):

Participation (50%): Active involvement in the group discussion.
Contribution (50%): Offering thoughtful insights and arguments based on the case study.

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