Business Administration 2257 Chapter 5: Chapter 5

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Danny Morrison

Document Summary

A contract is a deliberate and complete agreement between 2 or more competent persons, not necessarily in writing, supported by mutual considerations, to do some act voluntarily. A contract is enforceable in a court of law. An agreement: an agreement is composed of an offer to enter into a contract and an acceptance of that offer. Idea behind a contract is that there has been a meeting of the minds - that the parties have agreed on what their essential obligations are to each other. Complete: this agreement must be complete, that is, certain. Deliberate: the agreement must be deliberate, that is, both parties must want to enter into a contractual relationship. Voluntary: the agreement must be freely chosen and not involve coercion or other forms of serious unfairness. Between two or more competent persons those who enter into a contract are known as parties to the contract.