JANUARY 1, 2026
BUSINESS LAW II
SUMMARY
KOEN HANEGREEFS
VUB
,Table of Contents
Chapter 1 — What is Business Law? ............................................................................. 7
Key Definitions (Important).................................................................................................... 7
Origin & Evolving Nature of Law (Important) ........................................................................... 8
Morality & Culture Shaping the Law (Important)...................................................................... 8
Sources of Law (Neutral) ....................................................................................................... 9
Common Law vs Civil Law Systems (Important) .................................................................... 10
Stare Decisis (Important) .................................................................................................... 10
Conflict of Laws / Private International Law (Important)........................................................ 11
Yahoo! v. La Ligue — Case Study (Important) ........................................................................ 11
Free Speech vs Hate Speech: US vs EU/Germany (Important) ............................................... 12
International Law in Daily Life (Neutral)................................................................................ 14
Schools of Jurisprudence (Less important) ........................................................................... 14
Chapter 4 — Introduction to Contracts ....................................................................... 15
Definition of Contract (Important) ........................................................................................ 15
Legal Definition (from slides).................................................................................................................................... 15
Four Essential Elements .......................................................................................................................................... 15
Benefits of Contracts to Society ............................................................................................................................... 15
Nature, Classification & Formation (Important) .................................................................... 15
A. By Formation: Express vs. Implied ........................................................................................................................ 15
B. By Performance: Bilateral vs. Unilateral ................................................................................................................ 16
C. By Stage of Performance: Executed vs. Executory ................................................................................................. 16
D. By Enforceability: Valid / Void / Voidable / Unenforceable...................................................................................... 16
E. Contract Classification Matrix (5 Axes).................................................................................................................. 16
Formation: The Offer (Important) ......................................................................................... 17
Three Requirements of a Valid Offer ......................................................................................................................... 17
Advertisements: Offer or Invitation to Treat? ............................................................................................................. 17
Country Comparison Table — Advertisements as Offers ........................................................................................... 17
Key Case: Carlill v. Carbolic Smoke Ball Co. (1893) ................................................................................................... 18
Termination of an Offer ............................................................................................................................................ 18
Formation: Acceptance (Important) ..................................................................................... 18
Requirements of Valid Acceptance .......................................................................................................................... 18
When Does Acceptance Take Effect? ....................................................................................................................... 19
Silence as Acceptance ............................................................................................................................................ 19
Commercial vs. Social Presumption ......................................................................................................................... 19
Consideration (Important) ................................................................................................... 19
Common Law: Consideration .................................................................................................................................. 19
Civil Law: Causa (Cause) ......................................................................................................................................... 20
Adequacy vs. Sufficiency of Consideration ............................................................................................................... 20
Promises that Lack Consideration ............................................................................................................................ 20
Common Law vs. Civil Law — Contract Systems (Important) ................................................. 21
Option Contract Exception (Neutral) .................................................................................... 22
Definition & Key Features ......................................................................................................................................... 22
Koen Hanegreefs 1
, Four Exceptions to Free Revocability of Offers .......................................................................................................... 22
Chapters 5–6 — Reality, Capacity & Legality of Contracts ............................................ 23
Proof of Contract Existence (Neutral) ................................................................................... 23
Meeting of the Minds (Mutual Assent) (Important) ................................................................. 23
Objective vs. Subjective Theory ................................................................................................................................ 23
Six Reasons Mutual Assent May Be Lacking — Overview (Important) ..................................... 23
Defect 1: Mistake (Important) .............................................................................................. 24
Mutual (Bilateral) Mistake ........................................................................................................................................ 24
Unilateral Mistake ................................................................................................................................................... 24
Mistake in Value ...................................................................................................................................................... 24
Defect 2: Fraud (Fraudulent Misrepresentation) (Important) ................................................. 25
Five Elements — All Must Be Present ........................................................................................................................ 25
Remedy .................................................................................................................................................................. 25
Defect 3: Innocent (Nonfraudulent) Misrepresentation (Important) ....................................... 25
Defect 4: Duress (Important) ............................................................................................... 25
Five Categories of Improper Threats ......................................................................................................................... 25
Defect 5: Undue Influence (Important) ................................................................................. 25
Four Confidential Relationships ............................................................................................................................... 26
Signs of Overpersuasion (Cumulative Factors) .......................................................................................................... 26
Defect 6: Unconscionability (Important)............................................................................... 26
Adhesion Contracts ................................................................................................................................................. 26
Types of Unconscionability ...................................................................................................................................... 26
Chapter 6: Capacity of Parties (Important) ........................................................................... 27
Three Categories of Persons Who May Lack Capacity ................................................................................................ 27
Capacity Tiers — Summary Table ............................................................................................................................. 27
Capacity: Minors in Detail (Important).................................................................................. 27
Capacity: Intoxicated Persons in Detail (Important) .............................................................. 28
Why Intoxicated Persons Receive LESS Protection Than Minors ................................................................................. 28
Capacity: Mentally Incapacitated Persons in Detail (Important) ............................................ 28
Chapter 6: Legality of Contract (Important) .......................................................................... 28
Three-Part Legality Check (from slides)..................................................................................................................... 28
Effect of Illegal Agreements ..................................................................................................................................... 28
Examples of Illegal Agreements................................................................................................................................ 29
Exceptions — When a Court May Grant Relief ........................................................................................................... 29
Case Study: The Engagement Ring — Sam & Em (Important).................................................. 29
Facts ...................................................................................................................................................................... 29
Core Legal Question ................................................................................................................................................ 29
Arguments — Team Sam (return the ring) .................................................................................................................. 29
Arguments — Team Em (keep the ring) ..................................................................................................................... 30
Jurisdictional Split & Outcome ................................................................................................................................. 30
Practical Application Problems (Neutral) ............................................................................. 30
Chapter 5 Problems................................................................................................................................................. 30
Chapter 6 Problems................................................................................................................................................. 30
Chapter 8 — Discharge, Damages & Force Majeure ..................................................... 31
Discharge of Contract — Methods (Important)...................................................................... 31
Koen Hanegreefs 2
, 1. Performance ....................................................................................................................................................... 31
2. Agreement........................................................................................................................................................... 31
3. Operation of Law (Frustration / Impossibility) ........................................................................................................ 31
4. Breach ................................................................................................................................................................ 31
5. Methods of Discharge — Summary Table .............................................................................................................. 32
Types of Breach (Important) ................................................................................................ 32
Material Breach ....................................................................................................................................................... 32
Minor (Partial) Breach .............................................................................................................................................. 32
Anticipatory Breach — Common Law ....................................................................................................................... 32
Nachfrist Notice — Civil Law / PECL ......................................................................................................................... 32
Three Key Elements to Bring a Contract Case in Court (Important) ........................................ 32
Damages — Types and Taxonomy (Important) ...................................................................... 33
Equitable Remedies ................................................................................................................................................ 33
Mitigation of Damages ............................................................................................................................................. 34
Hadley v. Baxendale (1854) — Landmark Case (Important) .................................................... 34
Direct vs Indirect Damages — Summary Table .......................................................................................................... 34
Case Study — Lone Star Liquors (Important)......................................................................... 35
Doctrine of Frustration / Impossibility vs. Force Majeure (Important) .................................... 35
Doctrine of Impossibility / Frustration (Common Law) ............................................................................................... 35
Force Majeure (FM) — Contractual Clause................................................................................................................ 35
ICC Force Majeure — Four Criteria (Most National Laws)........................................................................................... 36
Duty to Mitigate under Force Majeure ....................................................................................................................... 36
Civil Law Positions................................................................................................................................................... 36
COVID-19 and Force Majeure — Business Lesson ..................................................................................................... 37
Frustration vs. Force Majeure — Comparison Table .................................................................................................. 37
Statutory Limits & Liquidated Damages Rules (Less important) ............................................. 37
Chapter 13 — Secured Transactions, Bankruptcy & Compliance ................................. 38
PART 1 — Secured Transactions & Bankruptcy ..................................................................... 38
Unsecured vs. Secured Transactions (Important) ................................................................. 38
The Insolvency Test ('Bankruptcy Test’) (Important) .............................................................. 39
Bankruptcy vs. Reorganization (Important)........................................................................... 39
US Bankruptcy Chapters — Overview ....................................................................................................................... 40
Civil-Law Equivalents .............................................................................................................................................. 40
Creditor Rights ........................................................................................................................................................ 40
Debtor Protections .................................................................................................................................................. 40
How Bankruptcy Begins — Petition, Dividing Line & Timeline (Important) ............................... 41
Voluntary vs. Involuntary Petition ............................................................................................................................. 41
The Bankruptcy 'Dividing Line' .................................................................................................................................. 41
Procedural Timeline (Post-Petition) .......................................................................................................................... 41
The 'Preference Period' / 'Stink Period' ...................................................................................................................... 42
Top 10 Corporate Bankruptcies in History (context) (Less important) ......................................................................... 42
The Trustee's Role in Bankruptcy (Important) ....................................................................... 42
Core Duties of the Trustee ....................................................................................................................................... 42
Ch. 7 Distribution Order (Statutory Priority) ............................................................................................................... 43
Pledge vs. Secured Transaction (Important) ......................................................................... 44
Attachment of a Security Interest (Important) ...................................................................... 44
Three Requirements for Attachment (UCC §9-203) .................................................................................................... 44
Koen Hanegreefs 3
BUSINESS LAW II
SUMMARY
KOEN HANEGREEFS
VUB
,Table of Contents
Chapter 1 — What is Business Law? ............................................................................. 7
Key Definitions (Important).................................................................................................... 7
Origin & Evolving Nature of Law (Important) ........................................................................... 8
Morality & Culture Shaping the Law (Important)...................................................................... 8
Sources of Law (Neutral) ....................................................................................................... 9
Common Law vs Civil Law Systems (Important) .................................................................... 10
Stare Decisis (Important) .................................................................................................... 10
Conflict of Laws / Private International Law (Important)........................................................ 11
Yahoo! v. La Ligue — Case Study (Important) ........................................................................ 11
Free Speech vs Hate Speech: US vs EU/Germany (Important) ............................................... 12
International Law in Daily Life (Neutral)................................................................................ 14
Schools of Jurisprudence (Less important) ........................................................................... 14
Chapter 4 — Introduction to Contracts ....................................................................... 15
Definition of Contract (Important) ........................................................................................ 15
Legal Definition (from slides).................................................................................................................................... 15
Four Essential Elements .......................................................................................................................................... 15
Benefits of Contracts to Society ............................................................................................................................... 15
Nature, Classification & Formation (Important) .................................................................... 15
A. By Formation: Express vs. Implied ........................................................................................................................ 15
B. By Performance: Bilateral vs. Unilateral ................................................................................................................ 16
C. By Stage of Performance: Executed vs. Executory ................................................................................................. 16
D. By Enforceability: Valid / Void / Voidable / Unenforceable...................................................................................... 16
E. Contract Classification Matrix (5 Axes).................................................................................................................. 16
Formation: The Offer (Important) ......................................................................................... 17
Three Requirements of a Valid Offer ......................................................................................................................... 17
Advertisements: Offer or Invitation to Treat? ............................................................................................................. 17
Country Comparison Table — Advertisements as Offers ........................................................................................... 17
Key Case: Carlill v. Carbolic Smoke Ball Co. (1893) ................................................................................................... 18
Termination of an Offer ............................................................................................................................................ 18
Formation: Acceptance (Important) ..................................................................................... 18
Requirements of Valid Acceptance .......................................................................................................................... 18
When Does Acceptance Take Effect? ....................................................................................................................... 19
Silence as Acceptance ............................................................................................................................................ 19
Commercial vs. Social Presumption ......................................................................................................................... 19
Consideration (Important) ................................................................................................... 19
Common Law: Consideration .................................................................................................................................. 19
Civil Law: Causa (Cause) ......................................................................................................................................... 20
Adequacy vs. Sufficiency of Consideration ............................................................................................................... 20
Promises that Lack Consideration ............................................................................................................................ 20
Common Law vs. Civil Law — Contract Systems (Important) ................................................. 21
Option Contract Exception (Neutral) .................................................................................... 22
Definition & Key Features ......................................................................................................................................... 22
Koen Hanegreefs 1
, Four Exceptions to Free Revocability of Offers .......................................................................................................... 22
Chapters 5–6 — Reality, Capacity & Legality of Contracts ............................................ 23
Proof of Contract Existence (Neutral) ................................................................................... 23
Meeting of the Minds (Mutual Assent) (Important) ................................................................. 23
Objective vs. Subjective Theory ................................................................................................................................ 23
Six Reasons Mutual Assent May Be Lacking — Overview (Important) ..................................... 23
Defect 1: Mistake (Important) .............................................................................................. 24
Mutual (Bilateral) Mistake ........................................................................................................................................ 24
Unilateral Mistake ................................................................................................................................................... 24
Mistake in Value ...................................................................................................................................................... 24
Defect 2: Fraud (Fraudulent Misrepresentation) (Important) ................................................. 25
Five Elements — All Must Be Present ........................................................................................................................ 25
Remedy .................................................................................................................................................................. 25
Defect 3: Innocent (Nonfraudulent) Misrepresentation (Important) ....................................... 25
Defect 4: Duress (Important) ............................................................................................... 25
Five Categories of Improper Threats ......................................................................................................................... 25
Defect 5: Undue Influence (Important) ................................................................................. 25
Four Confidential Relationships ............................................................................................................................... 26
Signs of Overpersuasion (Cumulative Factors) .......................................................................................................... 26
Defect 6: Unconscionability (Important)............................................................................... 26
Adhesion Contracts ................................................................................................................................................. 26
Types of Unconscionability ...................................................................................................................................... 26
Chapter 6: Capacity of Parties (Important) ........................................................................... 27
Three Categories of Persons Who May Lack Capacity ................................................................................................ 27
Capacity Tiers — Summary Table ............................................................................................................................. 27
Capacity: Minors in Detail (Important).................................................................................. 27
Capacity: Intoxicated Persons in Detail (Important) .............................................................. 28
Why Intoxicated Persons Receive LESS Protection Than Minors ................................................................................. 28
Capacity: Mentally Incapacitated Persons in Detail (Important) ............................................ 28
Chapter 6: Legality of Contract (Important) .......................................................................... 28
Three-Part Legality Check (from slides)..................................................................................................................... 28
Effect of Illegal Agreements ..................................................................................................................................... 28
Examples of Illegal Agreements................................................................................................................................ 29
Exceptions — When a Court May Grant Relief ........................................................................................................... 29
Case Study: The Engagement Ring — Sam & Em (Important).................................................. 29
Facts ...................................................................................................................................................................... 29
Core Legal Question ................................................................................................................................................ 29
Arguments — Team Sam (return the ring) .................................................................................................................. 29
Arguments — Team Em (keep the ring) ..................................................................................................................... 30
Jurisdictional Split & Outcome ................................................................................................................................. 30
Practical Application Problems (Neutral) ............................................................................. 30
Chapter 5 Problems................................................................................................................................................. 30
Chapter 6 Problems................................................................................................................................................. 30
Chapter 8 — Discharge, Damages & Force Majeure ..................................................... 31
Discharge of Contract — Methods (Important)...................................................................... 31
Koen Hanegreefs 2
, 1. Performance ....................................................................................................................................................... 31
2. Agreement........................................................................................................................................................... 31
3. Operation of Law (Frustration / Impossibility) ........................................................................................................ 31
4. Breach ................................................................................................................................................................ 31
5. Methods of Discharge — Summary Table .............................................................................................................. 32
Types of Breach (Important) ................................................................................................ 32
Material Breach ....................................................................................................................................................... 32
Minor (Partial) Breach .............................................................................................................................................. 32
Anticipatory Breach — Common Law ....................................................................................................................... 32
Nachfrist Notice — Civil Law / PECL ......................................................................................................................... 32
Three Key Elements to Bring a Contract Case in Court (Important) ........................................ 32
Damages — Types and Taxonomy (Important) ...................................................................... 33
Equitable Remedies ................................................................................................................................................ 33
Mitigation of Damages ............................................................................................................................................. 34
Hadley v. Baxendale (1854) — Landmark Case (Important) .................................................... 34
Direct vs Indirect Damages — Summary Table .......................................................................................................... 34
Case Study — Lone Star Liquors (Important)......................................................................... 35
Doctrine of Frustration / Impossibility vs. Force Majeure (Important) .................................... 35
Doctrine of Impossibility / Frustration (Common Law) ............................................................................................... 35
Force Majeure (FM) — Contractual Clause................................................................................................................ 35
ICC Force Majeure — Four Criteria (Most National Laws)........................................................................................... 36
Duty to Mitigate under Force Majeure ....................................................................................................................... 36
Civil Law Positions................................................................................................................................................... 36
COVID-19 and Force Majeure — Business Lesson ..................................................................................................... 37
Frustration vs. Force Majeure — Comparison Table .................................................................................................. 37
Statutory Limits & Liquidated Damages Rules (Less important) ............................................. 37
Chapter 13 — Secured Transactions, Bankruptcy & Compliance ................................. 38
PART 1 — Secured Transactions & Bankruptcy ..................................................................... 38
Unsecured vs. Secured Transactions (Important) ................................................................. 38
The Insolvency Test ('Bankruptcy Test’) (Important) .............................................................. 39
Bankruptcy vs. Reorganization (Important)........................................................................... 39
US Bankruptcy Chapters — Overview ....................................................................................................................... 40
Civil-Law Equivalents .............................................................................................................................................. 40
Creditor Rights ........................................................................................................................................................ 40
Debtor Protections .................................................................................................................................................. 40
How Bankruptcy Begins — Petition, Dividing Line & Timeline (Important) ............................... 41
Voluntary vs. Involuntary Petition ............................................................................................................................. 41
The Bankruptcy 'Dividing Line' .................................................................................................................................. 41
Procedural Timeline (Post-Petition) .......................................................................................................................... 41
The 'Preference Period' / 'Stink Period' ...................................................................................................................... 42
Top 10 Corporate Bankruptcies in History (context) (Less important) ......................................................................... 42
The Trustee's Role in Bankruptcy (Important) ....................................................................... 42
Core Duties of the Trustee ....................................................................................................................................... 42
Ch. 7 Distribution Order (Statutory Priority) ............................................................................................................... 43
Pledge vs. Secured Transaction (Important) ......................................................................... 44
Attachment of a Security Interest (Important) ...................................................................... 44
Three Requirements for Attachment (UCC §9-203) .................................................................................................... 44
Koen Hanegreefs 3
