LAW 122 Chapter Notes - Chapter 7: Option Contract, Posting Rule, E-Commerce
1 Aug 2020
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Contract agreement that contains legally enforceable rights and obligations: able to enter as two parties experienced meetings of the minds. Meeting of the minds shared decision to enter into a legal transaction on a particular basis. Exchange of value occurs when parties each give up something. Parties must have intention to create legal relations. Must reach mutual agreement through process of offer and acceptance. Must enter into bargain by each giving consideration. Intention to create legal relations if reasonable person would believe that parties intend to create a legally enforceable agreement. Test is objective: test of subjective intention would be difficult to apply as person could easily lie, law of contracts aims to protect reasonable expectations. Use 2 presumptions: commercial contexts, parties presumed to intend legal relations, family or social contexts, parties are presumed to not intend legal relations. Requires more than intention to create legal relations.
