Management and Organizational Studies 2275A/B Chapter Notes - Chapter 6: Standard Form Contract, Estoppel
11 Feb 2019
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Document Summary
Before a contract can take place, parties must be in agreement i. e. have reached a consensus as to their rights and obligations. This takes the form of offer and acceptance. Offer: a promise to perform specific acts on certain terms. Only a complete offer can form the basis of a contract i. e. all essential terms must be set out, but does not require perfect clarity, as it can leave certain matters for future consideration. Invitation to treat: an expression as of willingness to do business that has no legal consequence. Depends on intention, objectively assessed i. e. would a reasonable person take this as an offer or recognize it as an invitation to treat. A fundamental rule is that a contract is formed only when a complete offer is unconditionally accepted by the other side i. e. is the offer sufficiently comprehensive that it can be.
