MCS 3040 Chapter 5: Introduction to Contracts

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

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, analyzing the elements of the above sentence: An agreement is composed of an offer to enter into a contract and an acceptable of that offer. Complete the agreement must be complete and 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 and there must be at least two parties in any contract. Supported by mutual consideration a contract involves a bargain or exchange between the parties thus each party must give something of value in exchange for receiving something of value from the other party.