Understanding Contract Law
12 important questions on Understanding Contract Law
Give the hierarchy from law from high above to low below.
2.Constitution
3.Act of Parliament (wifz: wet in formele zin)
4.Order in Council (AMvB: Algemene Maatregel van Bestuur)
5.Ministerial regulation (mr)
6.Provincial regulation
7.Municipal regulation
What is the freedom to contract?
- a person is free to make contracts when, with whom and with the content he or she choose.
What is a juridical act? (rechtshandeling)
- A juridical act is defined as an act intended to create legal consequences.
- (Dutch) law says that a juridical act can only be performed when the relevant will or intention is also made public by a declaration.
- So in principle, both the intention and its declaration are necessary, but it will at times occur that the declaration is not the same as the intention or that it is understood differently than intended by the other party.
- Important: if the other party cannot reasonably suspect that the intention was defective, he is allowed to rely on the declaration.
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What is the Principle of Consensualism? (principe overeenkomst)
When does Dutch law recognize a basic contract? (rompovereenkomst)
- When there is agreement about the essential parts of the contract.
- The relation between negotiating parties is governed by the general principle of reasonableness and equity ( redelijkheid en billijkheid).
What are other sources of obligations between parties?
2.Customary law, the unwritten rules that are accepted by the group in society in which there are frequent contractual relations ( raising hands in auction)
3.Principle of reasonableness and equity
What are standard terms or general conditions?
- A standard set of rules made by one of the parties, which uses them in all its contracts of the same kind.
- Risk: because one of the parties did not have any influence on the making of the general conditions, there is the risk that the conditions will only be the advantage of the party who makes them. T
- he risk of unfair advantage is made even greater by the circumstance that general conditions are usually accepted without being read by the other party.
When is the clause subject to annulment (of general conditions)?
- Unreasonably onerous clause, the circumstances of the particular contract, to the disadvantages of the other party, placing an unreasonably heavy burden on that party ( black and grey list).
- The user of the clause did not give the other party the opportunity to read the general conditions.
What is a contract?
What is a Public Private Partnership (PPP)
- long-term collaboration between the public authority’s and private company’s on e.g. government building projects or infrastructure.
- Not a legally defined concept!
How are PPP ussually made up?
-Design
-Build
-Finance
-Maintenance
-Operate
-(Transfer)
The contractor is about the output and the client is about the input. what are advantages of DBFMO(T)?
-clear task and risk distribution
-the market’s expertise is being used to its full extend -> innovation
-clear upfront financial planning
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