Vocabulary【Contract Disputes】
arbitration
When two parties have a disagreement, they may attempt arbitration.
Arbitration is a way to settle a dispute without going to court.
In arbitration, an independent third party is involved to assess and resolve the dispute.
arbitration: 仲裁
damages
Damages are money given as compensation to a party for a loss.
If one party has lost money because of a breach of contract, they may sue for damages.
damages: 损害赔偿金
repudiation
Repudiation is the refusal to fulfill the terms of a contract.
If one party doesn't perform their duties in a contract, it will lead to repudiation.
repudiation: 否认，拒绝履行
frustration
Frustration occurs when a contract can't be implemented for unexpected reasons.
Frustration of a contract is not the fault of either party.
For example, a lease will become frustrated if the property is destroyed by a fire.
Question
- If a party can prove a breach of contract in court,
> it will be awarded damages. - They preferred arbitration because it was faster and cheaper than going to court.
- While arbitration is conducted outside courts, any decision is legally enforced.
- They settled their dispute through arbitration.
- The judge awarded them $300,000 in damages.
- When they couldn't settle their dispute through arbitration, one party sued the other for damages.
- Repudiation may have consequences stated in a contract, or it may lead to legal action.
- Their failure to pay on time caused the contract to be repudiated.
- The government implemented new trade policies, causing a frustration of the contract.
- If a contract becomes frustrated, a new contract may be drawn up.
draw up contract: 起草合同
