ADM3123 Lecture : chapter 5
11 Mar 2014
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Enforceable contract: agreement which has legal consequences: complete: the agreement must be complete/certain, deliberate: both parties must want to enter into a contractual relationship (intention to create legal relations, voluntary: the agreement must be freely chosen and not involve coercion or other forms of serious unfairness, between two or more competent persons: there must be at least two parties to any contract, supported by mutual consideration: involves a bargain or exchange between parties (a party must give something of value in exchange for something of value from other party, not necessarily in writing: as a general rule, even oral contract is enforceable. Contract should be in writing because: cooperation and good will can suddenly evaporate, personnel can change, memories may become selective and self serving, genuine differences of opinion can emerge, for the most part, the rules governing contracts are based on common law.
