BUSI 2601 Chapter 5: Chapter-5
21 Jun 2016
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Contract: a deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration, to do some act voluntarily. It is enforceable in a court of law. Agreement: composed of an offer to enter into a contract and an acceptance of that offer. Complete: the agreement must be complete, that is, certain. Deliberate: the agreement must be deliberate, that is, both parties must want to enter into a contractual relationship. Voluntary: the agreement must be freely chosen and not involve coercion or other forms of serious unfairness. Between two or more competent persons: those who enter into a contract are known as parties to the contract. There must be at least two parties to any contract, who must have legal capacity. As a general rule, only parties to a contract can sue and be sued on it. Supported by mutual consideration: a contract involves a bargain or exchange between the parties.
