Law 122: Chapter 7 The nature and creation of contracts.docx

Chapter 7 The nature and creation of contracts Contract An agreement that creates rights and obligations that can be enforced in lawA meeting of the minds Is a shared decision to enter into a legal transaction on a particular basisExchange of value Occurs when the parties each give up something Creation of a contract The creation of a contract requires 3 important aspects1 The parties must have an intention to create legal relations2 They must reach a mutual agreement through the process of offer and acceptance3 They must enter into a bargain by each giving consideration 1 Intention to create legal relations pg 156Arises if a reasonable person would believe that the parties intended to create a legally enforceable agreem