Management and Organizational Studies 2275A/B Chapter 3: BUSINESS LAW chp 3 CONTRACTS

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

Document Summary

Def: a deliberate and complete agreement between two or more competent people supported by mutual consideration. An exchange of value (in forms of promises) which the law will enforce: must be legally enforceable. In contract law, breach of contract puts innocent party in the position they. Terms of contract voluntarily entered are fair. People will not enter contracts unless it benefits them. One must give and the other must receive something of value: not necessarily in writing even oral contracts are enforceable but preferred to be written. Offer is in effect when it is received by offeree. Acceptance is in effect when sent by offeree. Penalty clause: intends to punish, not compensate. Types of contracts: void contract: does not exist; cannot exist because it may have illegal terms, etc, voidable contract (one of the parties can avoid the contract if they want) Mutual mistake: both parties without fault are mistaken abt an essential term of contract.