MCS 3040 Chapter 5: An Introduction to Contracts

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Raddocchia

Document Summary

Contract - an agreement between two paries that is enforceable in a court of law: an agreement is composed of an ofer to enter into a contract and acceptance of that ofer. Rules governing contracts are generally based upon common law. Legal factors in their business context: creaing the contract. Objecive standard test - the test based on how a reasonable person would view the mater. Contract law is governed by the objecive standard test. Kind of contract a businessperson creates is inluenced heavily by their bargaining power (rarely equal bargaining power). Contract law is based on the assumpions that those who enter contracts have equal bargaining power. Equal bargaining power - the legal assumpion that paries to a contract are able to look out for their own interests. Courts generally assume paries evaluated risks and were prepared to accept both costs and beneits of a contract. Legal factors in their business context: performing or enforcing the contract.