Management and Organizational Studies 2275A/B Midterm: Condensed 2275 5-9

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

Document Summary

Businesses rely on contract law most, to facilitate commerce. Provides structure to create legally binding, commercial commitments. Contract: an agreement between two parties that is enforceable in a court of law. Is deliberate, complete agreement between two competency persons supported by mutual consideration to do some act voluntarily. An agreement is composed of an offer to enter into a contract and an acceptance of that offer, promises contained in the agreement are known as terms. Deliberate = both must want to enter into contractual relationship, this matter formally known as intention to create legal relations. Voluntary = must be freely chosen and not involve coercion or other forms of serious unfairness. Between two or more competent persons = (parties to the contract) must have legal capacity. Supported by mutual consideration = bargain or exchange in legal terms, contract must be supported by mutual consideration. Once contract created, permits both to rely on terms and plan affairs accordingly.