BUSI 4000 Lecture Notes - Lecture 6: Reputation Management
9 Dec 2017
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Contract: deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration, to do some act voluntarily, and which agreement is enforceable in a court of law. Elements include: agreement between the parties, completed negotiations, deliberately made, voluntarily made, between two or more competent persons, supported by mutual consideration, not always in writing, however, can be written. Examples: leases, sales contracts, loan contracts, supply purchase contracts, employment contracts, confidentiality agreements. Objective standard test: how a reasonable person would view the conduct of the parties. Bargaining power: legal assumptions that parties to a contract are able to look after their own interests. Courts normally not entitled to assess the fairness or reasonableness of the contractual terms the business partners have chosen. Occasionally courts will come to the assistance of the weaker party and set contract aside.
