BU231 Chapter 6: Formation of a Contract
Document Summary
Chapter 6: for(cid:373)atio(cid:374) of a co(cid:374)tract: offer a(cid:374)d accepta(cid:374)ce. They are not legally forced upon everyone, like tort or criminal liability. Contract: a set of promises that the law will enforce. 4 basic requirements to form a legally enforceable contract: offer, acceptance, consideration, intention. A contract is only formed until an offer has been made and accepted. Offer: description of a promise one party is willing to make, subject to the agreement of the other party: offeror: person making the offer, offeree: person to whom the offer is made. Once the promise/request is agreed upon, a contract is formed where the offeror and offeree are bound to carry out their promises. Offers are most commonly done verbally or in a written form however, one may communicate an offer without doing either. A bidder raises their finger at an auction. A practical matter, an offeree cannot change any terms of a standard form contract.
