ACCTG 1 Lecture Notes - Lecture 13: Force Majeure, Bound 2
Document Summary
Contract: the set of rules and principles that governs transactions among parties, thereby setting rights and obligations of these parties. Rules that are made by the contracting parties themselves. Often general conditions apply, but parties are free to determine the contents of their contract. Rules that emerge from the official national, european, and supranational sources. Law provides default rules that are automatically applicable if the parties have not made others. European treaties: supranational rules, for example un convention about sale of goods. Informal rules that are made by others (including non-state organizations and academics) Intended to influence the setting of norms or the deciding of cases by the formal institutions, source of inspiration for parties drafting a contract. 3 - formation of a binding contract: intention to be legally bound, consideration (in common law) = exchange of value, offer, acceptance, formalities/procedured fairness: Typical: exchange, an economic rationale underlies, 2 parties gain from the transaction.
