MCS 3040 Lecture Notes - Lecture 5: Reputation Management, Bargaining Power

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

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. Permit both parties to rely on the terms they have negotiated and plan their business affairs accordingly. Create binding promises that can be enforced in court. If a dispute arises between the two parties, there are various options for dispute resolution. Objective standard test how a reasonable person would view the conduct of the parties. Bargaining power legal assumption that parties to a contract are able to look after their own interests. Courts normally not entitled to assess the fairness of reasonableness of the contractual terms the business parties have chosen. Occasionally courts will come to the assistance of the weaker party and set contract aside.