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ARTICLE · 17 NOVEMBER 2016

Formation Of Contracts: Comparison Between Australia And Chile

The formation of contracts is both an exciting and stressful period for any construction project, and those without a legal background can often be left unsure of the formalities...

ChileCorporate/Commercial Law

The formation of contracts is both an exciting and stressful period for any construction project, and those without a legal background can often be left unsure of the formalities and statutory requirements needed to be complied with. This situation is exacerbated when the project is to take place in a foreign jurisdiction, where the terminology, language and practice may all be very different to what the party to a contract is accustomed to. It is essential that the variances between the Australian and Chilean jurisdictions are understood and appreciated, so each party is able to enforce and comply with their rights and obligations.

The most immediate difference is that Australia operates under a common law system, whereas Chile works as a civil law jurisdiction. Under Australian common law, each of the principles of contract law comes from individual cases, which means the person drafting the contract should be familiar with the cases, which give us

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