LS283 Lecture 5: 3.1 Introduction to Contracts

• School: University of Waterloo
• Department: Legal Studies
• Course: LS283
• Professor: Darren Charters

Document Summary

Practical considerations and things to be aware of. Essential legal concept when it comes to relationships in business. Social kinship bonds are not as strong in businesses - there"s a need to ensure expectations are met. Contracts are the basis of many if not most business transactions. Defines what each part expects to be done; each is committed to dong what they said and receiving what the other promises. Provides greater confidence terms of interactions will be honoured. Consequences can be imposed if there is a negative impact when not honoured. For the most part, contracts are governed by the rules of common law. Common law principles tend to reflect "common sense" and have been in existence a long time. There are statutory interventions because the common law rules turned out not to be practical/workable. Primary "common sense" principle is that contract "rules" are generally what the parties determine them to be.