AFM231 Chapter Notes - Chapter 5: Bargaining Power

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Darren Charters

Document Summary

Contract: an agreement between two parties that is enforceable in the court of law. An agreement: composed of an offer to enter a contract and an acceptance of that offer: meeting of minds, parties have agreed on what their essential obligations to each other are. Deliberate: the agreement must be deliberate bother parties want to enter the agreement. Voluntary: bother parties must be freely to chosen and not involved in coercion or other forms of serious unfairness. Between two or more competent persons: two parties to enter a contract both of which have legal capacity. Supported by mutual consideration: there has been a bargain or exchange between parties both parties must give something of value. Not necessarily in writing: oral contracts are enforceable. Once contract has been created it allows both parties to rely on the terms that are outlined. Judges usually are relying on statue law to solve these cases.