LAW 122 Lecture Notes - Lecture 7: Himalaya Clause, Absolution, Gamepro
15 Apr 2017
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Chapter 7 the nature and creation of contracts. A contract is an agreement that contains legally enforceable rights and obligations. It doesn"t need to be in writing to be legally enforceable. 1: meeting of the minds (offer and acceptance, exchange of value (consideration) An exchange of value occurs when the parties each give up something. Every contract requires a number of distinct steps or elements: The parties must have an intention to create legal relation. Must reach a mutual agreement through the process of offer and acceptance. They must enter into a bargain by each giving consideration. Rule parties must intend to create legal relations. Objective test would a reasonable person that that the parties intended to create a legally binding agreement. A reasonable person simply ignores unrealistic and exaggerated proposals (i. e. a lecturer"s sarcastic promise to pay k to a correct response)
