Basics of law

Lecture
18 January 2024, Warsaw
Sale agreement. Contract of perform
a specific task. Rent and lease. Lend
for use. Loan. Mandate and similar
contracts. www.sgh.waw.pl
Sale agreement
 Sale agreement
• sale agreement (contract) – the seller obliges themselves to
transfer the ownership of a thing to the buyer, the buyer
obliges themselves to pay and collect the thing
• parties can be the legal and natural persons
• objects can be things (movables and immovables), rights
(usufruct), enterprice, energy
• it is always a paid agreement, the price has to be expressed
in money (in some cases the prices are regulated)

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 Sale agreement
• it can be concluded in any form (with some exeptions, like
the real estate which needs a notary act)
• the seller is obliged to bare the costs of releasing the thing,
quality and the date should be regulated by the agreement
• if there is no agreement, the seller is obliged to release the
item in good quality
• the buyer has to collect the thing, the profits and burdens
of the thing are transfered to the buyer

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 Sale agreement
• when the thing is not collected the seller can store it on the
cost of the buyer
• the sale agreement is mutual, consensual and paid
• a thing can have defects
– physical defect – when the features of a thing do not
correspond with the contract, or failures diminish the
value of the thing
– legal defect – when the thing is owned by the third
party, or there is a liability
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 Sale agreement
• responsibility related to the warranty for the failures of the
sold thing has contractual and legal character
• the liability for the physical failure is on the seller’s side
• the buyer can cease the contract (unless the seller
exchanges the product for the one without failures, or
removes the failures)
• entitlements of the buyer according to the physical failures
expire after one year, in case of buildings after three years

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 Sale agreement
• after issuing the warranty document for the quality of the
sold thing the seller is obliged to remove the failure or
deliver the thing without failure in the time defined in the
warranty
• time of warranty if prolonged for the time the person could
not use the object
• if a new thing is given, the warranty time starts once again

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 Sale agreement
• installment sale – the price is paid in the defined
installments in a defined period of time, the thing is
released before the full payment
• sale with the reservation of ownership of the sold item –
the seller remains the owner until the full price is paid
• trial sale – the buyer can test the item within a period of
time, when they decide it is not good, they can return it to
the seller

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 Sale agreement
• sale with a right of repurchase – the seller has a right to
repurchace the sold object within a period of time
• preemption – a person has a priority right to buy
something before other buyers
• consumer sale – there is no warranty, but the consumer is
protected by the legal act

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 Sale agreement
• contract of exchange – each party transfers ownership of a
thing on the other, it is not paid agreement
• delivery contract – the deliverer (usually the producer) is
obliged to deliver the things partially, or periodically, the
receiver can control the deliveries, should be signed in
written form

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 Sale agreement
• contract farming – for the agricultural products
– the producer obliges themselves to deliver the products
in contracted amounts
– the receiver obliges themselves to receive the products,
to pay the agreed price and to fulfil additional benefits
(getting bank loans, getting access to production
means)

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 Sale agreement
– producer is usually a group of agricultural producers
(association, or cooperative), receiver is manufacturing,
or retail company
– the regulations about warranty apply
– the contract farming agreement is mutual, consensual
and paid

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 Sale agreement
• donation agreement – donator obliges themselves for the
unpaid benefit to the recipient (or a right), it can be an
amount of money, pieces of property, or release form debt.
Donation can be made in any form, it can be cancelled
when the receiver is ungrateful
• agreement on the free transfer of real estate – the owner
obliges themselves to transfer the real estate to the state
treasury or to municipality
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Contract of perform a specific task
 Contract of perform a specific task
• specific task contract – the party who accepts the order
obliges themselves to fulfill it, the purchaser obliges
themselves to pay
• both parties can be the natural and legal persons
• the object of such contract is a task – producing a thing that
did not exist before, or changing it significanly (e.g.
renovation of something)
• the agreement with a specific result
• can be concluded in any form
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 Contract of perform a specific task
• the date of realisation of task can be set
• the contract terminates when the task was accepted
without reservations
• the obligation of the person who accepts the order is
producing it up to date and in a way defined in the contract
– they should not do any additional work without the
consent of the purchaser
– their law is to get the salary
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 Contract of perform a specific task
• the purchaser is obliged to accept the task, if it is of good
quality and to pay the salary
• other obligations can be defined in the contract
• they have right to control how the work is being done,
demand the release of the task, or liabilities related to
warranty, they can also cease the contract if the task is not
done
• if the realisation has defects, the purchaser can demand
the exchange of work in the defined date
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 Contract of perform a specific task
• if the way of realisation has failures the purchaser can cease
the contract, or employ another person to realise the work on
the cost of the person who were to realise the task previously
• the purchaser can also demand the correction of defects, if
they are removable. When this is not done in a defined time,
the purchaser can cease the contract
• if they are repaired inproperly, the purchaser can order the
repair by another person, on the cost of the previous
contractor
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 Contract of perform a specific task
• the person who realises the contract can also refuse to
make reparation, if the costs are too high
• when the damage is not important the purchaser can
demand lowering the payment

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Lend for use
 Lend for use
• lending agreement – the lender obliges themselves to
allow to use a thing by the borrower for definite or
indefinite period of time, for unpaid using of a thing
– it is a real agreement – applies when the thing is
released to another person
– parties of an agreement can be natural or legal
persons
– the content is the unpaid using of a thing
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Rent and lease
 Rent and lease
• rent agreement – a landlord releases a thing/an object to
the tenant, for the definite, or undefinite period of time
– the tenant obliges themselves to pay regularly
– the landlord can be the owner, user, or administrator
of the property
– the tenant can be any legal or natural person
– the content of the contract is using the thing without
the right to gain profits from it and using the elements
of a thing
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Rent and lease
– the rent is usually paid periodically (e.g. per month)
– it can be concluded in every form, but usually it should
have a written form
– obligations of a landlord – releasing a thing to the
tenant in a good shape, which makes it appropirate to
use, claim of a rent

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Rent and lease

– obligations of a tenant – using a thing according to its

features, and the content of a contract, paying the rent,
minor repairs. They have a claim of becoming a thing
and a right to use it without disturbances
– the rent agreement is mutual, consensual and paid

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 Rent and lease
• lease agreement – the landlord obliges themselves to
release a thing and a right to make profit from it for a
definite or indefinite period of time
– the lessor obliges themselves to pay the rent
– the lessor and the tenant can be natural and legal
persons
– the object of lease can be things (or parts of things)
that give profits, rights, or enterprice
– the lease agreement is mutual, consensual and paid
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Rent and lease

– the rent can be paid in money or in services

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Rent and lease
• leasing agreement – paid agreement on using a thing
– the leaser buys a thing from the seller and releases a
thing to the user with a right to gain profit
– the user pays a defined amount of money for using
the thing
– definite period of time
– leasing agreement does not transfer the ownership
of a thing
– the subject of leasing can a movable and immovable
thing
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Rent and lease
– leasing agreement is unilateraly profesional – one party
is a company
– the user can be any natural or legal person
– the content of an agreement can contain a buying-off
option

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Loan
 Loan
• loan agreement – the loan giver obliges themselves to
transfer an amount of money or things to the borrower
• the borrower obliges themselves to give back the same
amount of money, or the thing in the same shape
• the parties are the giver and the borrower of the loan
• this is regulated by the civil code and banking law
• loan giver can be any legal and natural person

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 Loan

• the loan can be paid and unpaid

• within loan agreement the ownership of the thing is
transferred to the borrower
• agreement on loan is a consensual agreement
• the agreement can be concluded in any form, but for
bigger amounts of money it should be in written form

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 Loan
• credit (morgage, hypothec) agreement – the bank obliges
itself to give the amount of money for the defined period of
time for a defined purpose, and the borrower obliges
themselves to use it on the conditions defined in the
contract, and return it in installments, including interest and
provision
• the borrower can the natural and legal person
• it is a mutual agreement, consensual and paid
• the borrower must have creditworthiness to pay it back
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 Loan
• the loan agreement should be concluded in the written
form
• the bank is obliged to transfer the amount of money and a
right to safeguard
• the borrower does not have to the credit and is obliged to
repay the credit in the form and time defined in the
agreement, including the interest and provision
• the borrower has a right to earlier return of the credit, in
such case the provision has to be returned
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 Loan

• bank account agreement – bank obliges itself to safeguard

an amount of money for the defined, or undefined period
of time
• the parties are the bank and the natural or legal person
• consensual agreement, it defines, the kind, currency, time
and way of executing the agreement
• paid agreement

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 Loan

• settlement account
• savings deposit
• saving account

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Mandate and similar contracts
 Mandate and similar contracts

• mandate contract – the person who accepts the order

obliges themselves to make a particular legal activity for
the purchaser
• parties can be natural and legal persons
• the person who accepts the order makes the activity on
the behalf of the purchaser, or on own behalf on the
accont of the purchaser

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 Mandate and similar contracts

• the object of the contract is the activity made with accurate

precision, the activity that results in legal action
• agreements on services – control, supervision,
management, research, advice, legal suport, bookkeeping
• the contract can be paid and unpaid, concluded in any form
• the contract can be realised in any form

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 Mandate and similar contracts

• it is a contract of accurate precision – it means it is done

when the person who accepted the order worked in an
accurate way (the result is secondary)
• the person who accepted the order should make it by
themselves (also outsourcing to the third party is possible,
when such possibility is put into the agreement)
• the purchaser should cover the costs of the person who
accepts the order and pay the salary
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 Mandate and similar contracts
• agency contract – the person who accepts the order
(agent) obliges themselves to mediate and represent the
purchaser in making agreements with the clients
• the agent and the puchaser have to be companies
• the agent can act as a plenipotentiary and a broker and
should conclude contracts of different types on the behalf
of the company, who is a purchaser
• paid contract (provision)
• for a defined and undefined period of time
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 Mandate and similar contracts

• the agent is obliged to act with the guidelines of the

purchaser and to protect their rights
• the purchaser is obliged to cooperate with the agent and
to pay the provision

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 Mandate and similar contracts
• commission contract – the person who accepts the order
obliges themselves to buy or sell the movables (with
provision) in the own name, but on the account of the
purchaser
• commission agent has to be an entrepreneur and has to
give the benefit to the purchaser
• the purchaser does not have to be entrepreneur. When the
commission agent sells a thing to the third person the
information about the purchaser remain secret
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 Mandate and similar contracts

• the obligation ofthe commission agent is the proper

execution of the order, and to transfer all the profit to the
purchaser
• the obligation of the puchaser is to pay the commission
• in the commission purchase the commission agent is not
responsible for the defects if they informed the buyer

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 Literature
• Podstawy prawa dla ekonomistów, Bogusława Gnela (ed.),
Warszawa 2011.
• Joanna Jabłońska-Jońca, Podstawy prawa dla ekonomistów i
nie tylko, Warszawa 2007.
• Joanna Helios, Wioletta Jedlecka, Podstawowe pojęcia prawa i
prawoznawstwa dla ekonomistów, Wrocław 2015.
• Introduction to Law Second Edition, Jaap Hage, Antonia
Waltermann, Bram Akkermans (eds.), Springer 2017.
• Gary Slapper, David Kelly, Law: The Basics, Routledge 2011.
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Thank you for your
attention!
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