Management and Organizational Studies 2275A/B Lecture Notes - Lecture 2: Post Box, Condition Subsequent, Liquidated Damages

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Contract an exchange of value (often in the form of promises) which the law will enforce. Talked about cell phone company contracts- very unfair: vast inequality in arguing power and resources between me and my cellphone company. Because i signed it: why not just enforce contracts that are fair, because fairness is subjective. If there is a free market, its contract law. The freedom to choose which contracts you go into and on what terms is the free market, it is capitalism. Free market is the cornerstone of capitalism: assumptions made in contract law, people will not enter into contracts if they do not receive a benefit. Law assumes that people are rationally self interested: the terms of contracts voluntarily entered are fair, we do(cid:374)"t i(cid:374)(cid:395)ui(cid:396)e, (cid:449)e just assu(cid:373)e it. This is(cid:374)"t al(cid:449)a(cid:455)s t(cid:396)ue: ge(cid:374)e(cid:396)all(cid:455), (cid:449)e do(cid:374)"t care about fairness, but in some circumstances we do. Ie) an employee contract between worker and employer.