Management and Organizational Studies 2275A/B Chapter 5: MOS 2275 Chapter 5

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Contract deliberate + complete agreement between 2+ competent persons, supported by mutual consideration, to do an act voluntarily enforceable in a court of law. Agreement composed of an offer to enter into a contract and acceptance of that offer. Between 2 or more competent persons at least 2 parties, who must have legal capacity (only parties to a contract can sue/be sued on it) Supported by mutual consideration bargain or exchange between parties. Not necessarily in writing oral contracts enforceable but writing preferred (land must be written) Once a contract is created, permits both parties to rely on terms they have negotiated. Rules governing contracts are based on common law (judge-made laws, not those by governments) Contract law allows participants to create own rights/duties within rules that a judge can enforce. Contracts can be instantly completed (ex. purchase of a candy bar = sales receipt) or take time.