Management and Organizational Studies 2275A/B Chapter 5: Introduction to Contracts

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

A contract an agreement between two parties that is enforcement in a court of law: not necessarily in writing. Criteria of a contract: an agreement. An agreement is composed of an offer to enter into a contract and acceptance of that offer: complete. The agreement must be complete: 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 and other forms of serious unfairness: between two or more competent persons. Those who enter into a contract are known as parties to the contract. Only parties to a contract can sue and be sued on it: supported by mutual consideration. A contract involves a bargain or exchange between the parties. This means each party must give something of value in exchange for receiving something of value from the other party: not necessarily in writing.