ADM 3360 Chapter 5: Ch. 5 – An Introduction to Contracts
3 Dec 2016
School
Department
Course
Professor
Document Summary
Introduction to contract law: contract: an agreement between two parties that is enforceable in a court of law. Deliberate (both parties must want to enter into a contractual relationship) Voluntary (freely chosen; does not involve coercion or other form of unfairness) Between two or more competent persons (with legal capacity) Supported by mutual consideration (a bargain or an exchange) Not necessarily in writing (although it is preferable. Judged using common law (vs. statute law); use of precedents to guide deliberations. In the form of contractual negotiation, is automatically laden with legal meaning. Use of the objective standard test (based on how a reasonable person would view the matter: bargaining power. Equal bargaining power: the legal assumption that parties to a contract are able to look out for their own interest. (although it is rare for both parties to have equal power)
