Management and Organizational Studies 2275A/B Chapter 5: 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

Contract = an agreement between two parties that is enforceable in a court of law. Deliberate and complete agreement between 2 or more persons not necessarily in writing. Agreement is composed of an offer to enter into a contract and acceptance of offer. Agreement must be deliberate, both parties want in on the contractual relationship. Agreement must be freely chosen and involve coercion or other forms of serious unfairness. Those who enter into a contract are parties - must be at least 2 parties who have legal capacity. Some jurisdictions involving land must be in writing to be enforceable. One contract is created, both parties rely on the terms they have negotiated and plan their business affairs accordingly. If dispute arises between two parties there are many options for dispute resolution. Contract law ensures each party gets what it bargained for. Rules of governing contracts are based on common law.