Management and Organizational Studies 2275A/B Chapter Notes - Chapter 5-7: Plain Meaning Rule, Standard Form Contract, Contractual Term
17 Mar 2015
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Contract: deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration to do some act voluntarily and enforceable in a court of law. Agreement: offer to enter into a contract and an acceptance of that offer: promises in an agreement = terms, meeting of minds - parties have agreed on essential obligations to each other. Deliberate: both parties must want to enter into a contractual relationship intention to create legal relationship. Voluntary: freely chosen and not involve coercion or other forms of unfairness. Must have legal capacity: only parties to a contract can sue and be sued on it. Involves 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: oral contracts are enforceable, preferable to get contract in writing, certain kinds of contracts - land - which must be in writing.
