MCS 3040 Study Guide - Final Guide: Estoppel, Syllogism, Rescission

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

Document Summary

Deliberate agreement between two or more parties or competent persons, not necessarily in writing, supported by mutual consideration to do some act voluntarily. Examples of business contracts - leases, sales contracts, supply purchase, employment contract. Law, and thus contracts, are governed by the objective standard test which means, how would a reasonable person view the matter? . Advantages of a contract: permits both parties to rely on terms and plan their businesses accordingly, creates binding promises that are enforceable in court, provides options for dispute resolution. Bargaining power - negotiating parties have equal bargaining power , which means parties can look out for their own interests (courts usually don"t have access to fairness of contract but may come to the defense of the weaker party) Suing and litigation - not always the best option as parties must weigh reputation and relationship against potential gains from a lawsuit.