B LAW301 Lecture Notes - Lecture 7: Meeting Of The Minds, Objective Test, Fax
3 Apr 2017
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Chapter 7: the nature and creation of contracts. Contract: a legally enforceable agreement (a simple promise is not legally enforceable). Meeting of the minds: a shared decision to enter into a legal transaction on a particular basis. Exchange of value: occurs when the parties each give up something. Definition: arises if a reasonable person would believe that the parties intended to create a legally enforceable agreement. Test applied at time of purported contract (not in hindsight). Comfort letter: informal promise that creates a moral obligation, but not a legal one. Definition: an indication of willingness to enter into a contract on certain terms. Definition: an indication of willingness to receive an offer. Display of an item on a store shelf, even if it carries a price tag. Statement placed in a newspaper advertisement of catalogue. A statement is not an offer unless it is communicated and received as an offer. Buying a tv from a department store on credit.
