Summary of English-Czech Contract Law Terminology

## Introduction Contract law governs agreements between parties and the legal rules that determine when promises are enforceable, how obligations are performed, and what remedies exist when things go wrong. This guide breaks down essential contract law terms into clear definitions, examples, comparisons, and practical tips for quick study. ## Core Concepts and Definitions > **Contract**: A legally binding agreement between parties creating mutual obligations. > **Offeror / Offeree**: The **offeror** is the person who makes an offer; the **offeree** is the person to whom the offer is made. > **Intention to be bound**: The parties must intend their agreement to have legal effect. > **Acceptance**: Agreement by the offeree to the exact terms of the offer. > **Consideration**: Something of value exchanged between the parties (not listed in the provided terms but useful context). > **Formation (to enter into / be concluded / to be made)**: The moment when parties have an offer, acceptance, consideration (where required), and intention to be bound so that the contract is formed. ### Practical example: Formation - Alice offers to sell her bike to Bob for $100 (Alice = offeror, Bob = offeree). - Bob accepts the offer and pays $100. The contract is formed — the parties are now **bound by the contract**. ## Performance and Breach > **To fulfil contract / Performance of contract**: Completing the obligations set out by the contract. > **To breach contract / Breach of contract**: Failing to perform an obligation under the contract. > **Party in default**: The party who has failed to perform their contractual duties. > **Default / To default / Defaulter**: Failure to meet an obligation; a defaulter is the person who fails to perform. Practical example: If Bob never delivers the goods after receiving payment, Bob is in default and has breached the contract. ## Remedies and Relief > **Damages were awarded / To seek damages**: A court may order the breaching party to pay monetary compensation for loss. > **Liquidated damages**: A pre-agreed sum in the contract that the parties decide will represent damages if there is a breach. > **Injunction / Award an injunction against sb.**: A court order preventing a party from doing something or requiring an action. > **Specific performance**: A court order requiring the breaching party to perform exactly as promised (used when money is insufficient). > **Rescission / Cancellation of contract / To cancel contract**: Ending the contract and returning parties, where possible, to their pre-contract positions. > **Remedy**: Any relief a court provides (monetary damages, injunctions, specific performance, rescission). Example: If a seller refuses to transfer a unique painting, a court may order specific performance instead of only damages. ## Modifying and Ending Obligations > **Termination/discharge / To terminate/discharge / To discharge**: Ending contractual obligations, either by performance, agreement, frustration, or breach. > **Mutual agreement**: Parties may agree to end the contract by mutual consent. > **Novation**: Replacing an old contract with a new one or changing a contracting party so that the original obligation is discharged and a new obligation is created. > **Accord and satisfaction**: Parties agree to accept a different performance to discharge the original obligation. > **Waiver**: Voluntary relinquishment of a known right (e.g., a party waives a right to insist on strict contractual compliance). Example: Company A and Company B agree to novate a supply contract so that Company C becomes the supplier and assumes obligations. ## Time Limits and Statutes of Limitations > **Statutory limitation period / Limitation of action**: The legally fixed period during which a claim can be brought. > **Obligation is statute-barred / Time barred / Promlčen**: When the limitation period has passed and the right to sue is lost. > **A period of time elapsed**: The passage of t