Management and Organizational Studies 2275A/B Lecture Notes - Lecture 2: Astatine

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

Document Summary

Contract: an agreement between two parties that is enforceable in a court of law. An agreement: an offer to enter into a contract and an acceptance: promises contained in the agreement are called terms. Deliberate: both parties want to enter into a contractual relationship: intention to create legal relations . Voluntary: must be freely chosen, not involve coercion or unfairness. Between two or more competent persons: those who enter are known as parties: only parties to a contract can sue and be sued on it. Supported by mutual consideration: involve a bargain/exchange between parties: each party must give something of value and receive something of value. Legal factors in their business context: creating the contract. Economic reality: may be situations where the cost of compensation is an acceptable price to pay for release from obligation. Economic breach: economic breach occurs when one party calculates that it is more nancially rewarding to breach the contract than to perform it.