ACCT352 Midterm: Exam 3 Notes
21 Dec 2018
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Contract: an agreement voluntarily entered into by parties which creates obligations enforceable by law. Swiping your debit / credit card for purchases at restaurants, stores, doctor visits, etc. Borrowing a book from your local library. Offeror (promisor): party who makes an offer to enter into a contract. Offeree (promisee): party to whom an offer is made. Breach of contract: occurs when offeror or offeree fails to perform the obligation she agreed to. Non breaching party can file a civil lawsuit to recover any damages resulting from the breach. Agreement: parties each consent to give up something of value in exchange for something of value. Must mutually assent (agree) to terms of offer. There is meeting of the minds about terms, conditions, and subject matter of the offer and acceptance. Consideration: the bargained for exchange of something of value in return for something of value (money, services, goods, promises)
