LAW 122 Lecture : Chapter 7 The nature and creation of contracts.docx
27 Nov 2012
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Chapter 7: the nature and creation of contracts. An agreement that creates rights and obligations that can be enforced in law. Is a shared decision to enter into a legal transaction on a particular basis. Occurs when the parties each give up something. Arises if a reasonable person would believe that the parties intended to create a legally enforceable agreement. This is objective because it depends on whether an outside person would find the contract was intended to create a legally enforceable agreement and not the people who actually made it. Courts usually do not believe this when it comes to family members although it can be rebutted: they must reach a mutual agreement through the process of offer and acceptance pg. An indication of a willingness to enter into a contract on certain terms. Creating an offer is risky because once accepted it is legally binding. An indication of a willingness to receive and offer.
