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

Contract: an agreement between 2 parties that is enforceable in a court of law. Agreement: an agreement is composed of an offer to enter into a contract and an acceptance of that offer. Deliberate: agreement must be deliberate, both parties must want to enter into a contractual relationship. Voluntary: the agreement must be freely chosen and not involve coercion or unfairness. Between 2 or more competent persons: those who enter into a contract are known as parties to the contract. Must be 2 legal parties to any contract who must have legal capacity. Supported by mutual consideration: a contract involves a bargain or exchange between to parties. Each party must give something of value in exchange for receiving something of value from the other party. Not necessarily in writing: even oral contracts are enforceable, preferable to get it in writing.