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1、UnitThreeBusinessLaw--ContractandAgencyIntroductionBusinesslawisanimportantpartoflegalsystem.Mostlegalissuesconfrontedbybusinessesfailintooneofbusinesslaw:contract,tort,property,agency,commercialorbankruptcylaw.Theseareascoverawiderangeofbusinessactivity.TextExercisesRelatedTechnicalTermsGrammar1Bus
2、inesslaw—alsocalledcommerciallaw,ormercantilelaw—isnotrecognizedspeciallyasabranchofcommonlaw,but,inpopularusage,isfrequentlyanomnibustermgiventotitlesoftextbooksandacademiccoursesonsuchcommercialsubjectsascontract,agency,commercialtransactions,bankruptcy,andlabour.Text2Acontract,inthesimplestdefini
3、tion,isapromiseenforceablebylaw.Thepromisemaybetodosomethingortorefrainfromdoingsomething.Themakingofacontractrequiresthemutualassentoftwoormorepersons,oneofthemordinarilymakinganofferandanotheraccepting.Ifoneofthepartiesfailstokeepthepromise,theotherisentitledtolegalresourseagainsthim.Thelawofcontr
4、actsconsiderssuchquestionsaswhetheracontractexists,whatthemeaningofitis,whetheracontracthasbeenbroken,andwhatcompensationtheinjuredpartyisentitledtohave.Text3Contractlawseekspartiestoprotectanagreementnotonlybyrequiringformalities,butinmanyotherwaysaswell.Thusrulesrespectingdeceit,fraud,andundueinfl
5、uencearedesignedtoensurethatcontractualobligationsareassumedfreelyandwithoutonepartymisleadingtheother.Otherrulesregulatethemodificationofongoingcontractualrelationswithaviewtopreventingapartywithconsiderablebargainingpowerwithunfairlyimposingchangesinthecontract.Thelawallowsalsocontractualrelationt
6、obeadjustedwhentheyhavebeenthrownoutofbalancebyunforeseencircumstances.Thetaskofadjustmentcanbecomemoreintractablewhentheerrorischargeabletoonlyoneparty.Thesolutionsreachedforsuchsituationsarecomplexanddefygeneralstatement.Text4Thelawofagencygovernsthelegalrelationshipinwhichoneperson(theagent)deals
7、withanother(thirdparty)onbehalfofstillanother(theprincipal).Thus,theprocessofconcludingacontractthroughanagentinvolvesatwofoldrelationship.Ontheonehand,thelawofagencyisconcernedwiththeexternalbusiness
