A Voluntary Agreement Between Two Parties In Which Specific Promises Are Made

There may be circumstances in which it would be unfair to allow the defaulting party to simply redeem the victim with damages. For example, if an art collector buys a rare painting and the seller refuses to deliver, the collector`s damages would be the amount paid. A voluntary agreement between countries, institutes and people on what a product or process is, what it should look like and what it should do or accomplish is important. To this end, standards are an important element of the European single market. But of course, the idea of standardization can also be used within a group of authorities, as standardization facilitates communication between different participants or stakeholders who work in a single process or implement a project (for example. B crime prevention). Standards thus facilitate cooperation and make processes more transparent. Following a standard is something that people and organizations do on a purely voluntary basis: “Compliance is not mandatory.” An exception arises when advertising makes a unilateral promise, such as the offer of a reward, as in the famous case of Carlill v Carbolic Smoke Ball Co,[18] decided in nineteenth-century England. The company, a pharmaceutical manufacturer, promoted a smoke bullet that, if sniffed “three times a day for two weeks,” would prevent users from catching the flu. If the smoke bullet could not prevent the flu, the company promised that they would pay £100 to the user, adding that they had “deposited £1,000 at Alliance Bank to show our sincerity in this matter”.

When Ms. Carlill complained about the money, the company argued that the announcement should not be considered a serious and legally binding offer; Instead, it was a “simple train”; But the Court of Appeal ruled that for a reasonable man, it seemed that Carbolic had made a serious offer, and found that the reward was a contractual promise. In some circumstances, these terms are used differently. For example, in English insurance law, an insured`s breach of a “condition precedent” is a total defence against the payment of duties. [69]:160 In general insurance law, a guarantee is a promise that must be kept. [69] With respect to product transactions, warranties promise that the product will continue to operate for a certain period of time. Contemporary insurance institutions have grown from two different roots: mutuals that date back to medieval (or earlier) guilds and maritime insurance agreements that date back to fifteenth-century Italian city-states (and perhaps earlier, for example.B. Greek bottomry loans, which were loans to traders that were only repaid if freight arrived safely at the port). Early insurance contracts indicate that the courts have dealt with these two forms of insurance under contract law and have assessed the obligations of the company or company on the basis of the commitments made in the insurance contract. Although the European Union is in principle an Economic Community with a number of trade rules, there is no cross-cutting “EU Treaty Law”.