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Course Introduction to International Business Law

Course Introduction to International Business Law. Lecture 2 . Topics . Revision lecture 1 Questions Subjects of today: At what moment have you reached an agreement? Stages of preliminary negotiations. Breaking of negotiations (breach of contract and tort). Homework.

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Course Introduction to International Business Law

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  1. Course Introduction to International Business Law Lecture 2

  2. Topics • Revision lecture 1 • Questions • Subjects of today: • At what moment have you reached an agreement? • Stages of preliminary negotiations. • Breaking of negotiations (breach of contract and tort). • Homework

  3. Reaching an agreement • An agreement is concluded when one party accepts (offeree) the offer of another party (offerer) • Legal offer: • an offer is described • a price is determined • the number of objects is given • Invitation to enter into negotiations

  4. Reaching an agreement 2 • Reception theory: the offer is valid when it reaches the other party • Withdrawing an offer -> prevents that the offer becomes a valid offer • Revoking an offer -> valid offer but offerer changes his mind and cancels

  5. Reaching an agreement 3 • No revocation • The offer has already been accepted by the offeree • The offer is irrevocable

  6. Stages of preliminary negotiations • Rules of good faith • According to EU jurisprudence two stages in the negotiation phase: • Stage 1: parties start negotiating/exploring possibilities • Stage 2: an agreement is within reach

  7. Breaking of negotiations • Possibility to claim damages? • Using breach of contract? • Using tort?

  8. Claim damages? • Stage 1: Parties are free to break off negotiations, no claims • Stage 2: with the agreement within reach no liberty to break off the negotiations unless the breaking off party pays for the costs (& loss of profit)

  9. Using breach of contract? • Parties have already concluded a contract when they agree on two essential elements -> • Price • Object • The party that breaks off is liable for damages of the other party

  10. Using Tort? • In case parties didn’t agree on price and/or object -> no agreement reached. • Claim damages based on tort • Relevance of “good faith’ and in what way the interest of the other party was taken into consideration

  11. Homework • Exercises 1 and 2 Chapter 2

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