Management and Organizational Studies 2275A/B Chapter 5: Business Law Chapter # 5

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

Document Summary

A contract is a deliberate and complete agreement between two or more competent persons, supported by mutual consideration, It is enforceable in a court of law. An agreement is composed of an offer to enter into a contract and an acceptance of that offer, Deliberate-both parties must want to enter into a contractual relationship. Voluntary- the agreement must be freely chosen and not involve coercion or other forms of serious unfairness. Between two or more competent persons-those who enter into a contract are known as parties to the contract. There must be at least two parties to any contract. Supported by mutual consideration-a contract involves a bargain or exchange between the parties. Each party must give something of value in exchange for receiving something of value from the other party. Not necessarily in writing- as a general rule, even oral contracts are enforceable, though it is not preferable for negotiators to get the contract in writing.