Textbook Notes (368,449)
Canada (161,886)
LAW 122 (625)
Chapter 7

Chapter 7.docx
Premium

3 Pages
119 Views
Unlock Document

Department
Law and Business
Course
LAW 122
Professor
Andre Serero
Semester
Fall

Description
November 6, 2012 Chapter 7 – The Nature and Creation of Contracts Introduction  Contract – An agreement that creates rights and obligations that can be enforced in law.  Meeting of minds – A shared decision to enter into a legal transaction on a particular basis.  Exchange of value – Occurs when the parties each give up something  Every contract requires three steps: o The parties must have an intention to create legal relations o They must reach a mutual agreement through the process of offer and acceptance. o They must enter into a bargain by each giving consideration. Comparing Torts and Contracts  Concept Summary 3.2 Pg. 63  Tort is imposed by law, contract voluntarily created by the parties Intention to Create Legal Relations  Intention to create legal relations – Arises if a reasonable person would believe that the parties intended to create a legally enforceable agreement.  Court asks whether a reasonable person would have believed that the parties intended to enter into a contract. Test is objective Offer  The Nature of an Offer – Must enter into a mutual agreement through the process of offer and acceptance. o Offer – An indication of a willingness to enter into a contract on certain terms o Offeror – A party who offers to enter into a contract o Offeree – Party who receives an offer to enter into a contract  Invitation to Treat – An indication of a willingness to receive an offer.  Communication of an Offer – Can be stated verbally or written  The Life of an Offer – If an offer is not accepted it may cease to exist in a variety of ways: o Revocation- If the offeror withdraws an offer  Firm offer – Occurs when the offeror promises to hold an offer open for acceptance for a certain period (Can be revoked)  Offers can only be firm (not revoked) if the offeror’s promise was placed under seal or offeree paid for the right to accept.  Option – A contract in which the offeror is paid in exchange for a binding promise to hold an offer for acceptance for a specific period.  Tender – An offer to undertake a project on particular terms. (pg 161-162 or Concept s
More Less

Related notes for LAW 122

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit