MCS 3040 Lecture 5: Chapter 5
5 Dec 2017
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Elements of a contract: agreement between the parties, completed negotiations, deliberately made, voluntarily made, between two or more competent persons, supported by mutual consideration, not necessarily in writing. Advantages of contracts: 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. Examples of business contracts: leases, sales contracts, loan contracts, supply purchase contracts, employment contracts, confidentiality agreements. First, it can be a fine line between an actionable misrepresentation (which would allow the representee to sue) and engaging in sales talk" (which has no legal consequence). Second, the business person who bluffs and exaggerates may well have her morality called into question. On a related front, those who see business as a game also risk creating the same kind of corporate culture which will lead to demise.
