LAW 122 Lecture Notes - Lecture 7: Posting Rule, Contract, Objective Test
4 Apr 2016
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Document Summary
Contract is an agreement that contains legally enforceable rights and obligations. Meeting of the minds is a shared decision to enter into a legal transaction on a particular basis. An exchange of value occurs when the parties each give up something. A contractual relationship can continue even after there has been an exchange of value. Right and obligations usually lie quietly beneath the surface while the future unfolds as the parties expected. It is true that most contracts are performed without problems. But also true that most problems that do arise are avoidable. The parties must have an intention to create legal relations. They must reach a mutual agreement through the process of offer and acceptance. They must enter into a bargain by each giving consideration. An intention to create legal relations arises if a reasonable person would believe that the parties intended to create a legally enforceable agreement.
