Hi everyone! Now I will give you some information about the problem of power for making, or signing a contract.

We can tell that if contract, in general, can be made and carried out easily and without any risk happening to each party, people will likely to use contracts habitually with no hesitation. However, It is not simple that much. How would you react if you realize that you were cheated by the other parties, and, at the same time, getting to know that they actually have some mental illness? In international trade, things are much more complicated. When you start to think of making a export contracts, you have to be well aware of the power to sign a contract of your prospective partner before entering the contract. This socalled contractual capacity is regulated differently in different law system. Lets just have a look at one of the main law systems that we usually have to deal with: In the Anglo American law system, mostly you will have to bear the problem on your own if you sign a contract with a company which do not have full power of making a contract itself, and for example provide services to it, and does not receive anything money. In such case, the duty of finding out the power of making a contract of this company is yours, and thats your fault if you couldnt do it properly. That the companies act beyond its granted power and not being responsible for it, is called ultra vires rule. United Kingdom and the United states, fortunately dont allow this unbalanced situation in their company law, which make British and American companies are easier to do business with. Another system you may know is Continental legal system. This law system seems more safer by sticking with intra vires rule, which is the opposite mean. Now, following we will listen to the problem around the purpose of the contract with Ms

Thank you. Now I will tell you about the legality purpose of a contract. First, as many of you may know, if the purpose of an agreement is illegal, the agreement is theoretically unenforceable. The truth is, youd never want to trade on something illegal if you treasure your own opportunity for the next time trade. Drugs bring about extreme profit, but also extreme risk of getting jailed. However, whether you want it or not, you can not always know how much youre violating the local or national regulation. For example, a new rule is published that forbids the parties contracting to import with packaging made of rice husks in to nation X. A contract between an nation Y exporter and nation X importer specifying rice-husk packaging would be certainly illegal, though not much. That may also make the contract unenforceable, which is not a very good news. So, to prevent this, there is an helpful method usually used in the contracts. Its called partial invalidity provision.. It say that if the invalidity of one part of the contract is not enforceable, it does not invalidate the rest, and the parties will try restoring the original purpose of the contract by making a new cause. This will help parties block the risk of the whole contract being invalidated by unknown regulations. Thats the end of my part. Now, Ms will give us some overview and detail about the relation of the contract to parties rights and duties

Thank you Ms Now I will tell you the Exchange of Consideration First, Id like to explain the term consideration here The consideration, according to business law in general, is mostly related to the agreement on specific amount of money or other goods and valuable consideration. This, we can consider as something that the parties hand over and give up, which mean rights and duties. These can be either mental or physical. For example, if you agree to buy a boat for cash (in folding notes) you must agree to deliver the cash directly to the seller and the seller agrees to deliver the boat to you. Within two main law systems that we have studied, Anglo American systems and Continental systems, therere different consideration of the rights and duties related stuff. Under Anglo American systems, there are two types of agreement: Agreement in which one side has only rights and the other side has only duties, which is called one sided agreement, and agreement in which both sides have rights and duties, called two sided agreement. The first type, in these law systems, is not considered a contract. Rather, it is considered as sealed instrument, like a promise, but more secured than a promise because of the sealed characteristic. The second type, however, is considered a contract. Continental legal systems do not observe this distinction. And carrying out a legal one sided or two sided contract is not much different from each other. Export contracts are normally two sided, except for the following situation: - Release from and Obligation, in which one party has duty to release, and the other one has rights to be released. - Agreement to modify a contract: normally not referring to any new rights and duties of the parties, rather it change/modify the original provision in the contract.

Thats the end of my part, thank you for listening.