MGSC30H3 Chapter Notes -Reasonable Person, Milkshake, Fax
Document Summary
Contract is an agreement that contains legally enforceable rights and obligations (ie: buying a textbook). Meeting of the minds is a shared decision to enter into a legal transaction on a particular basis (ability to enter into agreement and make a contract). Exchange of value occurs when the parties each give up something (ie: cash for the textbook). Contractual relationship can continue even after there has been an exchange of value. Although some contracts are performed without problems; they occur because parties failed to think carefully about the legal implications of their actions. People need the help of a judge only when something has gone terribly wrong, by knowing your rights and obligations you can avoid that situations. It is preferable to avoid the court system so resolving a dispute informally is more effective because legal proceedings tend to signal the end of a relationship.
