Management and Organizational Studies 2275A/B Chapter 5: MOS 2275 Chapter 5 Textbook Notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Contract: an agreement between two parties that is enforceable in a court of law: a deliberate and complete agreement between tow or more competent persons to do some act voluntarily, contracts involve: An offer to enter into a contract and an acceptance of that offer. Both parties must want to enter into a contractual relationship. The agreement must be freely chosen and not involve coercion or other forms of serious unfairness. Those who enter into a contract are known as parties to the contract. Supported by mutual consideration: once a contract is created, it permits both parties to rely on the terms. Legal factors in their business context: creating the contract. Bargaining power: the type of contract a businessperson creates is influenced by their. A test based on how a reasonable person would view the matter bargaining power: negotiating parties rarely every have equal bargaining power.