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10. Прочитайте и переведите текст, ответьте на вопросы, выполните упражнения, данные 
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1
.
What is a contract? 
2. What must a valid contract include? 
3. In what forms do contracts exist? 
4. What contracts must always be in writing? 
5. What is a breach of a contract? 
6. What may the injured party seek in court? 
7. What is a remedy? 
8. Who must compensate for a breach of a contract? 
9. What are damages

 
 
Contract law is a body of rules governing the formation, performance, and enforcement of contracts. 
Its major purpose is to protect the reasonable expectations of individuals, businesses, and governments, 
that contract will be binding on and enforceable by the parties.
A contract is an agreement which is made between two or more parties and which is binding in 
law.
The parties must have a legal intention to be legally bound before making a contract. They 
must agree to contract on certain terms, they must know what they are agreeing to. 
In order to be binding in law the agreement must include an offer and an acceptance of that 
offer. In every valid contract there must be an exchange of consideration. A valuable consideration is 
something a person has given, or done, or agreed not to do when making a contract. For example, 
when you buy an item at a store, your consideration is the money you pay, and the seller’s 
consideration is the item you buy. 
Most contracts can be either written or oral. However, certain kinds of contracts must be in 
writing to be enforceable in court of law. These include contracts for the sale of land and estate
contracts of insurance and hire-purchase. 
In a valid contract each person is legally bound to do what is promised. If one party to a 
contract does not carry out the promise, the other party can go to court and be entitled to a remedy. 
First, the court must decide if a contract has been made. The judge will also consider if the 
contract has all the essential elements: an offer, an acceptance and a valuable consideration. It is very 
important for a judge to consider the capacity of contractors, which is whether they are legally 
competent to make a contract. 
When one party refuses to perform or fails to perform the obligations under the contract, it is 
called a breach of contract. The party in breach must compensate the other party. Accordingly, the 
injured party may seek any of several remedies for the breach in court. A remedy is the means to 
enforce a right or to compensate for injury. The usual remedy is damages – monetary compensation. In 
addition to financial loss a plaintiff sometimes tries to claim damages for mental distress caused by the 


212 
breach of contract. A court will award damages only for the loss closely connected with the 
defendant’s breach. 
Instead of damages, a plaintiff sometimes asks the court to force the other contractor to carry 
out the contract. In English law it is called specific performance. Sometimes the court decides to award 
damages instead of specific performance, and sometimes it awards both. 


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