LAW 122 Lecture 4: CHAPTER 7
11 Sep 2017
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Document Summary
Chapter 7 the nature and creation of contracts. Contract: agreement that contains legally enforceable rights and obligations. Meeting of the minds: a shared decision to enter into a legal transaction on a particular basis. Exchange of value: parties each give up something. Contracts requires a number of distinct steps or elements. Notable steps include the following: 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. Intention to create legal relations intention to create legal relations: arises if a reasonable person would believe that the parties intended to create a legally enforceable agreement. The courts usually presume that an intention to create legal relations exists in a commercial context, but not between friends or family members. (however these presumptions can be rebutted, or disapproved. Offeror: a person who offers to enter into a contract.
