📝 CONTRACT LAW – MIDTERM SUMMARY (Simple

English)

1. 🔹 What is a Contract?
 A contract is a legal agreement between two or more people.
 They agree to do or not do something.
 It must be enforceable by law.

2. 🔹 Types of Legal Transactions

 Unilateral: One person acts (ex: making a will).
 Bilateral: Two people agree (ex: sale, donation).
 Multilateral: More than two people (ex: partnership contract).

3. 🔹 Valid Contract Requirements

1. Offer
2. Acceptance
3. Consideration (something of value in return)
4. Intention to create legal relations
5. Legal capacity (age, mental state)

4. 🔹 Offer
 Must be clear, serious, and communicated.
 Example: Saying "all reasonable offers welcome" is not a clear offer.
 Samantha’s drum ad was a clear offer; Edward’s was not.
5. 🔹 Acceptance
 Must be clear agreement to the offer.
 Only the person who received the offer can accept it (offeree).
 In some countries (UK), contract is valid when acceptance is sent.
 In others (France, Germany), valid when acceptance is received.

6. 🔹 Consideration
 Both sides must give something of value.
 Can be money, service, product.
 Example: Nestlé chocolate wrappers were legally valid “value”.

7. 🔹 Promissory Estoppel
 If someone promises something and the other person relies on it, it may become
legally binding, even without return value.
 Example: Timothy relied on his parents’ promise for €15,000 to buy a house.

8. 🔹 Mistake in Contract
 Unilateral mistake: One side is wrong (ex: Suzy sells bike for €10 instead of €1,000
by mistake).
 Bilateral mistake: Both sides misunderstood the agreement.

9. 🔹 Misrepresentation
 Giving false information:
o Innocent = by accident
o Negligent = carelessly
o Fraudulent = on purpose
10. 🔹 Duress and Undue Influence
 Duress = forced by threat.
 Undue Influence = unfair pressure by someone powerful (ex: doctor, boss).

11. 🔹 Good Faith & Performance

 Parties must be honest and fair.
 In some systems, a contract must be written (ex: land sale, Brazil = must be in
Portuguese).
 Contracts that break the law or morality are not valid.

📚 MULTIPLE CHOICE QUESTIONS

1. What is NOT required for a valid contract?
A) Offer
B) Love and trust
C) Acceptance
D) Consideration
✅ Answer: B

2. Which one is an example of “consideration”?

A) Saying “thank you”
B) Giving a gift out of love
C) Paying money for a service
D) Giving advice to a friend
✅ Answer: C
3. In UK law, when is a contract valid?
A) When the offer is made
B) When the offer is received
C) When the acceptance is sent
D) When the court says it’s valid
✅ Answer: C

4. Which case is an example of promissory estoppel?

A) Edward sells his drums
B) Suzy types the wrong bike price
C) Timothy relies on a promise from his parents
D) Chang lies about the car engine
✅ Answer: C

✍️SHORT ESSAY / CASE QUESTIONS

Case 1 – Offer or Not?

Edward posts online:

"Selling Sonar drum kit. Hardly used. All reasonable offers welcome."

Samantha posts:

"Selling Sonar drum kit – blue, full set, €5,000, available now, pick-up in London."

Question:
Who made a valid offer? Why?

Answer:
✅ Samantha made a valid offer.
She gave clear and complete terms: product, price (€5,000), availability, and location.
Edward’s message was vague (“reasonable offers welcome”) – it’s not a legal offer.
Case 2 – Consideration?
Nestlé offered a music record in exchange for 3 empty chocolate wrappers + postal fee.
Is this valid consideration? Why?

Answer:
✅ Yes, it is valid consideration.
Even though the wrappers seem small in value, they are part of a commercial exchange.
Nestlé got benefit (promotion), and customer gave something in return. This counts as a
legal exchange.

Case 3 – Promissory Estoppel

Timothy’s parents promised him €15,000. He bought a house based on this. They changed
their minds.
Can Timothy claim the money? Which principle applies?

✅ Yes. The principle of promissory estoppel applies.

Timothy relied on his parents' promise to buy a house. When they changed their mind, he
suffered loss. Law protects him because his reliance was reasonable.

Case 4 – Suzy’s Mistake

Suzy offers to sell her bike to Winny for €10 (she meant €1,000).
Winny says yes immediately.
Is this contract valid? Which principle applies?

Answer:
✅ No, the contract is not valid.
Suzy made a unilateral mistake (typo: €10 instead of €1,000).
Under Dutch law (Article 3:33), her intention did not match her expression.
Winny cannot reasonably expect that price. The contract can be voided.
Case 5 – Misrepresentation
Chang sells a car to Jia. He says the engine was renewed, but it wasn’t.
What type of misrepresentation is this?
What can Jia do?

Answer:
✅ Fraudulent misrepresentation (if Chang lied on purpose).
If Chang knew the engine wasn’t changed, Jia can cancel the contract and claim damages.
✅ If he wasn’t sure but said it anyway → Negligent.
✅ If he trusted someone else (mechanic) → Innocent misrepresentation.

🧠 MIDTERM SUMMARY – IN BASIC ENGLISH

1. What is Liability?
  It's when someone is legally responsible for harm or damage.
 There are two types:
o Fault-based: You’re responsible because you did something
wrong.
o Strict liability: You’re responsible even if it wasn’t your fault.

2. Preventive Law

 The goal is to avoid legal problems before they happen.

 Lawyers help businesses follow rules (like food safety) and create fair
contracts.
 Some countries use mediators, like Japan's noise officers for karaoke
bars.

3. Contractual Liability

 If you sign a contract and don’t do what you promised, you can be sued.
 Civil law = focuses on making you do what you promised.
 Common law = focuses on paying money for the damage.

4. Civil Law Approach

 If someone breaks a contract:

1. Force them to do it (Specific Performance)
2. Let someone else do it at their cost
3. Ask for compensation

5. Common Law Approach

 The main idea: Pay money for damages.

  Even if it’s impossible to perform (like a storm), if there’s a force
majeure clause, you might not be responsible.

6. Islamic Law

 You can get money back for broken contracts.

 No extra money for things like lost income or stress.

7. The CISG (International Law)

 Lets you choose: Ask for performance or damages.

 Applies to contracts between companies in different countries.

8. Non-Contractual Liability (Tort Law)

 If someone harms you outside of a contract.

 You must prove:
o A law was broken
o You were harmed
o There’s a link between the act and your damage
o It was done with intent or carelessness

9. Types of Torts

 Intentional: Done on purpose (like assault or defamation)

 Unintentional (negligence): Not careful (like forgetting to fix a wet
floor)

10. Strict Liability

 No need to prove fault.

 Used in:
 o Dangerous animals
o Defective products (like toxic toys)
 Product liability: If a product is unsafe, the maker is responsible.

11. Product Liability in the EU vs US

 EU:
o Need to prove: damage + defect + connection
o Compensation limits set by law (like 70M euros)
 US:
o Easier to prove (consumer expectation or risk-utility)
o Also includes breach of warranty

✅ MULTIPLE CHOICE QUESTIONS (MCQs)

1. What is strict liability? a) Liability only if you break a contract
b) Liability with no need to prove fault ✅
c) Liability only in criminal law
d) Liability for minor issues
2. What does "force majeure" mean in contracts? a) Performance must
be forced
b) Blame is assigned to the government
c) No one is responsible for natural disasters ✅
d) Compensation must always be paid
3. Which law system focuses more on specific performance? a) Islamic
Law
b) Common Law
c) Civil Law ✅
d) Tort Law

4. In product liability, what must be proven in EU law? a) The product

was old
b) Fault of the user
c) Damage, defect, and a link between them ✅
d) Price of the product
 5. Which is a tort? a) Making a legal contract
b) Harming someone without a contract ✅
c) Sending a gift
d) Renewing a license

🔍 CASE STUDY QUESTIONS (SLIDE STYLE)

🎤 Case Study 1: Madonna’s Concert Cancellation

Scenario: Madonna cancels a show 15 minutes before it starts. Fans sue for
breach of contract.

Question:
What kind of legal claim can the fans make? Would she be liable if there’s a
force majeure clause?

Think About:

 Was there a valid contract?

 Was there a reason beyond her control?

 If there was no force majeure clause, fans may claim damages for
expenses (like tickets, travel).
 If there was a clause (like illness or force majeure), she may not be
liable.
 Court will check if the reason (illness or emotional issue) qualifies as
"unavoidable."

✅ Legal Concepts: Breach of contract, Specific Performance (if rescheduling is

possible), or Damages (if not).

🎧 Case Study 2: Foo Fighters Vinyl

Scenario: Mo loses Chris’s signed vinyl.

Question:
Is Mo liable? What if it was accidental?
Think About:

 Was Mo careless (negligent)?

 Can Chris ask for a replacement with the same value?

Answer:

 Yes, Mo can be liable under negligence if he didn't take good care.

 Since the vinyl was signed and rare, Chris can ask for compensation
matching its value.
 If Mo lost it on purpose, it could be intentional tort.

✅ Legal Concepts: Tort (negligence), Damages for unique personal property.

📱 Case Study 3: Huawei Phone

Scenario: A user drops the phone into water. It stops working.

Question:
Can they claim warranty or product liability?

Think About:

 What does the warranty say?

 Is the damage due to misuse or a defect?

Answer:

 Probably no, because most warranties exclude water damage and misuse.
 If the phone got damaged without misuse, the user might have a claim under product
liability.
 But if dropped in water, the user is at fault.

✅ Legal Concepts: Warranty limits, Manufacturer liability, Proof of proper use.

CHAPTER 3
📘 1. What is Legal Personality?
 A legal person can have rights and duties in the eyes of the law.
 Two types:
o Real/Natural person = A human.
 o Artificial/Juristic person = A company, club, or organization.

🧠 2. What is a Person?
 Person = A human being.
 Personality = The way someone behaves, thinks, and feels.

🩺 3. Start and End of Legal Personality

 Starts at birth → When a baby is born alive.
 Ends at death → Or when the court says a missing person is “dead”.
 In Turkey: A baby in the womb can have rights if it is born alive later (Civil Code
Article 27).

🏢 4. Legal Person (Not a Human)

 Examples: companies, clubs, associations.
 Start: With registration, contract, or law.
 End: With closure, bankruptcy, etc.
 Cannot have personal rights like marriage or age.

🧾 5. Business Types (Organizations)

🔹 Sole Proprietorship

 One person owns the business.

 Not a separate legal person.
 The owner is fully responsible for all debts.
 Easy to start, but risky.

🔹 Partnership

 Two or more people share a business.

 Partners share profits and are responsible for debts.
 If one partner does something without permission, others may still be responsible if
the third person believes it was allowed (good faith).
Example case:
In "Dress Your Wedding" example, Javiera bought a Porsche without permission.
But the seller didn’t know → so the company is responsible.

🏢 6. Incorporated Company (Company with Legal

Personality)
 Separate from its owners.
 Limited liability: Owners only lose the money they invested, not more.
 Shares can be sold to others.
 A board of directors manages the company.
 Owners = shareholders.

🔸 7. Private vs Public Company

Private Limited Company

 Few owners (example: 50 or less).

 Shares are private, not sold to the public.
 Owners often work in the business.

Public Limited Company

 Shares are sold to the public (on stock market).

 Anyone can be a shareholder.
 Often bigger companies.
 May have government or banks as owners.

🎯 Midterm Tips – Remember These:

 Legal person ≠ always a human.
 Real person starts life at birth.
 Sole proprietors = full personal responsibility.
 Partnerships = shared responsibility.
 Companies = limited liability.
 Public company = shares sold to many people.
 Private company = shares owned by few, usually not public.
✅ Midterm Practice Questions
(in Simple English – with multiple choice, short answer, and mini case questions)

🎯 PART 1: Multiple Choice (Choose the best answer)

1. What is a legal person?

A) Only a human
B) A person with no rights
C) Someone who works in law
D) A person or company that can have legal rights and duties
➡️Answer: D

2. Who is responsible for debt in a sole proprietorship?

A) The company
B) Only the bank
C) The owner
D) The manager
➡️Answer: C

3. Which of these has limited liability?

A) Sole proprietor
B) General partnership
C) Private limited company
D) A real person
➡️Answer: C

4. When does a human get legal personality?

A) Before birth
B) At age 18
C) At birth, if alive
D) When they start working
➡️Answer: C

✍️PART 2: Short Answer Questions

5. What is the difference between a real person and a legal (artificial) person?
➡️Real person is a human being. Legal person can be a company, association, etc. Both can
have rights and duties.

6. What does “limited liability” mean?

➡️It means the owner is only responsible for the money they invested. Their personal money
is safe.

7. What is the main disadvantage of a sole proprietorship?

➡️The owner is fully responsible for all debts. Personal property can be taken if business
fails.

⚖️PART 3: Case-Based Questions (Short Essay Style)

8. CASE: Ms. A owns a small bag shop as a sole proprietor. One day, the shop is sued for a
faulty bag. The customer wins the case and asks for $5,000. Ms. A’s shop only has $1,000.
What happens?

➡️Because it is a sole proprietorship, Ms. A must pay the rest ($4,000) from her personal
money. The business and the owner are the same.

9. CASE: Three friends (Ali, Zeynep, and Mert) start a partnership to sell cookies. Zeynep
orders a delivery van without telling the others. The seller thinks she has permission. The
van is very expensive. Are all partners responsible? Why?

➡️Yes. In partnerships, if one partner makes a deal and the third person thinks it is legal, all
partners are responsible. It is called “good faith”.

10. CASE: A new company is registered as a Private Limited Company (Ltd). One
shareholder wants to sell his share to a stranger. Is it always possible?
➡️No. In private companies, shares cannot be sold freely. Usually, other shareholders must
agree first. The rule is to keep shares inside the group.