Management and Organizational Studies 2275A/B Study Guide - Estoppel, Michael Geist, E-Commerce

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

Document Summary

After studying this chapter, you should have an understanding of: how negotiations lead to a contractual relationship, how negotiations can be terminated, how contracts can be amended or changed. A contract comprises four essential elements: an offer, an acceptance, consideration, and an intention to contract. Before a contract can be formed, one party must make an offer on a complete set of certain terms. An offer can be terminated in a number of ways, including by revocation, lapse, rejection, counteroffer, death, or insanity. Assuming that an offer is on the table, the other party must unconditionally accept all the terms of the offer for the offer to be considered accepted. Each party must give something (called consideration) in exchange for the promise or performance of the other. The parties must intend their bargain to be a contractual one. If any one of these elements is missing, the relationship is non-contractual by definition.