BUSI 3705U Chapter 5: Chapter 5 An Introduction to Contracts
Document Summary
Contract: deliberate and complete agreement between 2 > competent people: not necessarily in writing, mutual consideration, voluntary. An agreement: composed of an offer to enter into a contract and accept that offer: promises are known as terms. Deliberate: both parties want to enter into relationship. Formally known as intention to create legal relations. Voluntary: freely chosen and not involve coercion or unfairness. 2 > competent persons: must have legal capacity. Supported by mutual consideration: involves a bargain or exchange between the parties. Not necessarily in writing: oral contracts are enforceable, but land negotiations must be done in writing. For the most part, contract rules are based on common law (judge-made instead of elected gov"t made laws) Contract law allows ppl to create their own rights within a framework of rules that a judge will later enforce if need be. Legal factors in their business context: creating the contract.
