MCS 3040 Chapter Notes - Chapter 5: Novation, Rebuttable Presumption, Efficiency Ratio

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: online

Document Summary

Once a contract is created, it permits both parties to reply on the terms they have negotiated and plan their business affairs accordingly: governed mostly by common law (judge-made laws) Contract law allows participants to create their own rights and duties within a framework of rules that a judge will later enforce (if called upon to do so) Communication: companies will communicate with a number or businesses in order to determine who can give their company the most favourable terms, communication, in the form of contractual negotiations, is automatically laden with legal meaning. Economic reality: it is not always the best economic decision for a party to keep a commitment and sometimes businesses will buy out of their contract if they can find a better, more profitable one. There are 4 basic elements of a contract: an agreement (offer&acceptance), complete (certainty), deliberate (intentions to create legal relations is present) and it is supported by legal consideration.