LAW 122 Chapter 5: Contracts – Basics
16 Dec 2015
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Contract: an agreement that contains legally enforceable rights and obligations. Meeting of the minds: shared decision to enter into a legal transaction on a particular basis. Exchange of value: occurs when the parties each give up something. Offeror: the person who makes the initial offer. Offeree: the person who responds (accepts or declines) the offer. Elements of a contract: intention to create legal relations, offer and acceptance, consideration given by each party. When a reasonable person believes that the parties intended to create legally enforceable agreement. Presumption: there is a intention to create legal relations in a commercial context but not between friends or family. An offer is and indication of a willingness to enter into a contract on certain terms. Once the offer is accepted, the contract has come into existence. This is an indication of willingness to receive the offer: example: shelves. Advertisements of products and product displays on store.
