LAW 122 Chapter Notes - Chapter 7: Fax, Posting Rule, Contract

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Theresa Miedema

Document Summary

It is important to note that the contract may continue even after the exchange of value, for example if there are some warranties for the future. A contract will not arise without an intention to create legal relations. The parties must have intended to create a legally enforceable agreement: the courts ask whether a reasonable person would have believed that the parties intended to enter into a contract. After the intention to create legal relations, there must also be a mutual agreement through offer and acceptance: an offer is an indication of a willingness to enter into a contract on certain terms. The person who offers to enter a contract is the offeror; the person who receives an offer is called an offeree: the courts classify some statements not as offers, but rather as invitations to treat. An invitation to treat is not an offer, but an indication of a willingness to receive an offer.