MCS 3040 Chapter 5: Chapter 5 Business & Consumer Law
15 Oct 2012
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Contract: an agreement between 2 parties that is enforceable in a court of law. Agreement: composed of an offer to enter into a contract and contained in the agreement are known as terms. The agreement must be complete, that is, certain. The agreement must be deliberate: most parties must want to enter into the contractual agreement. The agreement must be voluntary, the agreement must be freely chosen & must not involve coercion. Must be between 2 or more competent people. A contract involves a bargain or exchange between the parties. This means each party must give something of value in exchange for receiving something of value from the other. Even oral contracts are enforceable, through its preferable for negotiators to get contract in writing. Once contract is created, it permits both parties to rely on the terms they have negotiated to plan their business affairs accordingly. For dispute resolution, parties can take matter to court.
