Textbook Notes (368,529)
Canada (161,958)
LAW 122 (625)
Stan Benda (71)
Chapter 7


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Law and Business
LAW 122
Stan Benda

Chapter 7 The Nature and Creation of ContractsMost ppl are unaware of the vast number of contracts they enter into every day Eg Buying a book from a friendoContractis an agreement that creates rights and obligations that can be enforced in lawYou were able to enter into that agreement bc you both experienced a meeting of the mindsoMeeting of the Minds is a mutual agreement to enter into a legal transaction on a particular basisoExchange of Values occurs when the parties each give up something You both give up something as part of the deal youmoneyyour friendthe bookA contractual relationship can continue even after there has been an exchange of value Indeed one reason for entering a contract may be to reserve some rights and obligations for the future For egIf you purchased a book from a bookseller who offers a satisfaction or money back guarantee you would enjoy the right to a refundContracts requires a number of distinct steps or elementsiThe parties must have an intention to create legal relationsiiThey must reach a mutual agreement through the process of offering and acceptancesiiiThey must enter into a bargain by giving considerationCOMPARING TORTS AND CONTRACTSSource of PrivityCompensatory Risk ManagementObligationsDamages TortsImposed by LawEnforceable Place the plaintiff as if May take a person regardless of any the tort did not occurby surpriseagreement bt the May require more partiesthan a person is able to giveContracVoluntarily created by Enforceable only by Place the plaintiff as if Always possible to tsthe partiesor against a party to contract performknow the obligations the contractin advanceAlways possible to limit the obligations to promises that can be fulfilledFor more info refer to Chpt 3 Notes pg 1INTENTION TO CREATE LEGAL RELATIONSA contract will not arise wo an intention to create legal relationsoIntention to Create Legal Relations arises if a reasonable person would believe that the parties intended to create legally enforceable agreementThe court is concerned with what a reasonable person would have thought not necessarily with what the parties themselves actually thought There are two reasons for thisiA test of subjective intentions would be difficult to apply bc a person could easily lie at trailiiAn important goal of the law is to protect reasonable expectationThe courts usually presume that an intention to create legal relations exists in a commercial context but not between friends or family members However the presumption can be rebutted or disapproved 1 of 6
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