Textbook Notes (369,153)
Canada (162,424)
LAW 122 (625)
Chapter 7

CHAPTER 7 THE NATURE AND CREATION OF CONTRACTS.doc

5 Pages
145 Views

Department
Law and Business
Course Code
LAW 122
Professor
Theresa Miedema

This preview shows pages 1 and half of page 2. Sign up to view the full 5 pages of the document.
Description
CHAPTER 7 THE NATURE AND CREATION OF CONTRACTS Law 122 Contract: is an agreement that creates rights and obligations that can be enforced in law Contracts look forward, protect reasonable expectations Meeting of the Minds: is a mutual agreement to enter into a legal transaction on a particular basis Exchange of value (Consideration): occurs when parties each give up something, does not have to be of fair value Every contract requires a number of distinct steps: 1. The parties must have the intention to create legal relations 2. they must reach a mutual agreement (meeting of the minds) through the process of offer and acceptance 3. they must enter into a bargain by each giving consideration COMPARING TORTS AND CONTRACTS (PG 63) 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 - test is objective rather and subjective - Two reasons for that rule 1. a test of subjective intentions would be difficult to apply because a Person could easily lie at trial 2. an important goal of the law of contracts is to protect reasonable expectations  a reasonable person simply ignores unrealistic and exaggerated proposals  Rebuttable Presumption- do not intend to form a legal binding relationship with your family/friends but can’t be disproved/rebutted  Letters of intent (LOI)- write a letter stating a rough plan, FIRST LINE: THIS is not a contract OFFER  Parties must also enter a mutual agreement through the process of offer and acceptance  Offer: is an indication of a willingness to enter into a contract on certain terms  Offeror: party who is offering to enter into a contract  Oferee: party who is entitled to accept or reject an offer to enter into a contract  Judges have developed guidelines for deciding which type of statements qualify as offers, also placed limit on how long offers will last Invitation to treat  Invitation to treat: is an indication of a willingness to receive an offer  Distinction between an offer and an invitation to treat depends on an objective test  Ex. Display of item on shop floor, or price tags are invitation to treat Communication of an Offer:  A statement is not an offer unless it is communicated and received as an offer  Written or verbal The Life of an Offer  Offer does not last forever, it may cease to exit in a variety of ways o Revocation o Lapse of time o Death or insanity o Rejection o Counter offer Revocation  : occurs if the party who made an offer withdraws o Offeror generally entitled to revoke it at any time o Revocation is not effective unless it is reasonably communicated to the oferee (person receiving the offer)  Firm offers: occurs when the oferror promises to hold an offer open for acceptance for a certain period  A firm offer is not very firm at all  The offeror can revoke it at any time  A firm offer cannot be revoked if the offeror promise was placed under seal or if the offeree paid for the right to accept within a certain period  Option: is a contract in which the offeror receives something of value in exchange for a binding promise to hold an offer open for acceptance for a specific period  Would accomplish two things o It would allow the offeror at some point in the future to create a contract for the sale of land o It would immediately create an entirely separate contract requiring the offeror to wait while you decided whether to buy the land Tenders  Tender: is an offer to under take a project on particular
More Less
Unlock Document

Only pages 1 and half of page 2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

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