BUS 393 Chapter Notes - Chapter all: Precontract, Contingent Liability, Netflix

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: Robin Elliott

Document Summary

Bus 393 - final textbook notes chapter three: formation of contracts consensus. Contract: voluntary exchange of promises of commitments between parties that are legally enforceable in our courts. Consensus is achieved through a process of offer and acceptance - a shared commitment where both parties clearly understand the obligations and responsibilities they are assuming. Consensus may be found to exist by looking at the subsequent behaviours of the parties. If no offer or acceptance can be identified, but parties have come to a common understanding (with all other elements of a contract present), the court may find that a contract does exist. It is not necessary for both parties to have a complete understanding of what they have agreed to, only that that the terms are clear an unambiguous. Courts will always try to maintain a contract and interpret and enforce terms rather than cancelling the agreement offer.