BU231 Lecture 7: CONTRACT LAW
Document Summary
Contract formation: contracts are voluntary legal relationships, parties choose to make a contract and it is then when they become legally obligated to comply with its terms. Offer: a tentative promise made by one party, subject to a condition or containing a request to the other party. It is intended to be binding on both of the parties as soon as it is accepted: must be definite and certain, must be communicated to the intended recipient. Standard form contract: most common type of contract. The take it or leave it offer. No room for negotiation over terms of the contract: advantages: Little or no room to negotiate terms: unusual or unexpected terms: An offeree may be willing to accept terms because he or she assumes reasonably that the risk relates closely to the bargain made. Unexpected or onerous terms need to be brought to directly to the attention of the offeree.
