Management and Organizational Studies 2275A/B Chapter Notes - Chapter 6: Standard Form Contract, Root Mean Square, Estoppel

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

Document Summary

A promise to enter to perform speci ed acts on certain terms. All essential terms must be set out or the contract will fail for uncertainty. An o er can be certain even if it leaves matters to be decided in the future. Ex. setting the price in relation to the market price, although it does not set the price, it gives a workable way to determine the price. Ex. providing plans for the project, not o ering to buy but merely indicating interest. Any vague commitments that do not specify terms or scope of the agreement are considered invitation to treat. Ex. store owners declare their advertisements as an invitation to treat incase they run out of the product they are advertising, otherwise it would be a breach in contract for not having enough supply of the product. Display of goods (invitation to treat) > customer takes item to cash register (o er to purchase) >