MGSC30H3 Study Guide - Midterm Guide: Posting Rule, Contract
Document Summary
Contract: is an agreement that creates rights and obligations that can be enforced in law. Meeting of the minds: is a shared decision to enter into a legal transaction on a particular basis. Exchange of value: occurs when the parties each give up something. Contractual relationships can continue even after there has been an exchange of value: reserve some rights and obligations for the future. Elements of contract law: parties must have an intention to create legal relations, they must reach a mutual agreement through the process of offer and acceptance, they must enter into a bargain by each giving consideration. Intention to create legal relations arises if a reasonable person would believe that the parties intended to create a legally enforceable agreement. Offer is an indication of a willingness to enter into a contract on certain terms; a contract comes into existence as soon as an offer is accepted. Offeror makes the offer; offeree receives the offer.
