MCS 3040 Study Guide - Final Guide: 5,6,7,8, Bargaining Power, Legal Personality

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

Document Summary

Contract - deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration, to do some act voluntarily, and which agreement is enforceable in a court of law. Permits both parties to rely on the terms they have negotiated and plan their business affairs accordingly. Create binding promises that can be enforced in court. If a dispute arises between the two parties, there are various options for resolution. Supply purchase contracts: objective standard test - how a reasonable person would view the conduct of the parties, bargaining power - legal assumption that parties to a contract are able to look after their own interests. !1: contract law is only one relevant factor in a commercial transaction, the parties must consider the following: (a) business relationships (b) economic realities (c) reputation management. Offer: the starting point for all contracts, one party makes a promise to enter into a contract on specific terms (the.