MCS 3040 Lecture 5: Chapter 6 - Forming Contractual Relationships
6 Nov 2016
School
Department
Course
Professor
Document Summary
Legal ingredients of a contract: offer, acceptance, consideration, intention. One party makes a promise to enter into a contract on specified terms (the offer ), as soon as the offer is accepted. Only a complete offer can form the basis of a contract. Most advertisements and displays of good in stores are invitations to treat . Invitation to treat is not an offer and is only treated in law as an expression of willingness to do business. Display of goods (invitation to treat) customer takes items to cash register (offer to purchase at sticker price) clerk takes payment (acceptance of offer) A take it or leave it contract. Customer agrees to a standard set of terms that favours the other side. The law expects people to take care of themselves. Critical to read and understand the contract before signing. Offeree: the person to whom an offer is made. Lapse: expiration of an offer after a specified or reasonable period.
