LEGAL ENGLISH COURSE

Torino, 10-17-24 Ottobre 2014

LESSON 2

Extracts and Exercises

Oleh:
Nama: Muh.Riski J. Pakaya
Kelas: Regular A2
NIM : 601190014
EXERCISES - LESSON 2 Exercise n. 1. Contract duration. In a short while you’re going to read a
conversation between John and Margaret. Margaret is a qualified lawyer and John is a trainee.
They work in the same law firm.

John : Hi Margaret, do you have a minute? I need some advice on this contract.

Margaret : Sure. Tell me.

John : Well, the parties entered into this agency agreement and they provided a “term and termination”
clause, whereby the contract will come into force on 31 December 2010 and expire on 30 June 2012.

Margaret : Okay.

John : But they actually signed the contract on 15 November 2010.

Margaret : That’s correct, though the effective date of the contract is the date provided in the “term and
termination” clause, which is 31 December 2010. The contract will come into force at that date, where as
15 November is the date of signature. On this date the contract is valid, since it has met all the legal
requirements provided by the law, but it’s not effective yet.

John : I see. So, the effective date and the date of signature do not always have to match.

Margaret : Not necessarily, it depends on the parties’ agreement.

John : And what about the expiry date? Will the contract last until then?

Margaret : If the parties do not breach the contractual obligations and no event of termination occurs, then
the contract will cease to be effective as from the expiry date agreed in the “term and termination” clause.

John : Okay, it’s all clear now. Thank you so much, Margaret.

Margaret : You’re welcome John.

Mark “true” or “false” for the following sentences.

1. John is a qualified lawyer (false)

2. John asks Margaret to clarify some provisions of a contract (true)
3. The contract provides a “term and termination” clause (true)
4. The contract provides a date of entry into force and an expiry date for the contractual relationship
(true)
5. In the contract, the effective date matches with the date of signature (false)
6. The effective date is the date on which the contract comes into force (true)
7. The date signature is the date on which the parties sign the contract (false)
8. The expiry date is the date on which a contract terminates because a breach of contract has
occurred (true)
Exercise 2. Certainty of terms in contracts: a case study.

In Carlill v Carbolic Smoke Ball Co (U.K., 1893), the company placed advertisements in a
number of newspapers, declaring that it would pay £ 100 to anyone who caught the flu after using its
smoke balls according to the product instructions. The company further stated that it had deposited £
1.000 at the Alliance Bank as a guarantee against any possible claims. Mrs Carlill bought one smoke
ball, used it as indicated in the instructions, but still caught the flu. She claimed the sum of £ 100
stated in the advertisement but the company refused to pay her. Mrs Carlill then sued the company,
which argued that the advertisement was too vague to be considered a contract. The court eventually
held that the product instructions were sufficiently clear and defined to constitute the terms of a
contract and that the reference to the £ 1000 deposit was evidence enough of the company’s intention
to be bound. The court concluded, therefore, that Mrs Carlill was entitled to recover the £ 100 stated
in the advertisement.

Mark “true” or “false” for the following sentences.

1. Carbolic Smoke Ball Co advertised its smoke balls as a product which would prevent people from
catching the flu.(TRUE)
2. Mrs Carlill bought a smoke ball but did not follow the instructions for their use.(FALSE)
3. Carbolic Smoke Ball Co had provided a bank deposit of £ 1000 as a security for the reliability of
its smoke balls.(FALSE)
4. Mrs Carlill was awarded £ 100 by the Carbolic Smoke Ball Co because she had caught the flu
despite having used the smoke ball.(FALSE)
5. Carbolic Smoke Ball Co argued that its advertisement on the smoke balls was too vague to be
considered a contract.(TRUE)
6. The court held that Mrs Carlill was not entitled to the sum of £ 100 since the advertisement was
too vague to be considered a contract.(FALSE)

Exercise 3: Give the correct abstract noun for the following verbs.
EXAMPLE : to stipulate- stipulation

1. To propose = propose
2. To negotiate = negotiation
3. To execute = execution
4. To amend = conversion
5. To perform = appearance
6. To accept = reception
7. To promise =promise
8. To expire = not applicable
9. To change = change
10. To draft = arrangement
11. To waive = aside
12. To indemnify = compensation
13. To warrant = guarantee
14. To register = registration
15. To supply = supply