Management and Organizational Studies 2275A/B Chapter Notes - Chapter 6: Estoppel, Formal Language

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

Document Summary

Before a contract can be in place, the parties must be in agreement, they have reached a consensus as to their rights and obligations. This agreement takes the form of offer and acceptance. An offer is a promise to enter into a contract, as soon as the offer is accepted. Only a complete offer can form the basis of a contract. All essential terms must set out or the contract will fail for uncertainty. An offer does not have to meet the standard of perfect clarity and precision in how it is expressed. An offer can achieve that requisite standard of certainty even if it leaves certain matters to be decided in the future. An offer is different from a communication that merely expresses a wish to do business. Whether a communication is an offer or an invitation to treat depends on the speakers intention.