Management and Organizational Studies 2275A/B Chapter Notes - Chapter 5: Bargaining Power

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

Document Summary

An agreement composed of an offer to enter into a contract and an acceptance of that offer: a meeting of minds, parties have agreed on what their essential obligations are to each other. Complete agreement must be complete and certain. Deliberate agreement must be deliberate; both parties must want to enter into a contractual relationship (intention to create legal relations) Voluntary agreement must be freely chosen and not involve coercion or other forms of serious unfairness. Between two or more competent persons known as parties to the contract, there must be at least two who have legal capacity: only parties to a contract can sue and be sued on it. Supported by mutual consideration contract involves a bargain or exchange between the parties: each must give something of value in exchange for receiving something of value from the other party, must be supported by mutual consideration.