Management and Organizational Studies 2275A/B Chapter Notes - Chapter 6: Standard Form Contract, Formal Language, Fax

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

Document Summary

An agreement: before a contract can be in place, the parties must be in agreement, that is, they have reached a consensus as to their rights and obligations. This agreement takes the form of offer and acceptance. An offer is a promise to enter into a contract, on specified terms, as soon as the offer is accepted. Only a complete offer can form the basis of a contract. This means that all essential terms must be set out or the contract will fail for uncertainty. Doesn"t have to meet the standard of perfect clarity. If parties intend to have a contract courts will interpret the offer in a reasonable fashion. Offer can achieve certainty even if it leaves matters for the future. An offer is different from a communication that merely expresses a wish to do business. Invitation to treat: an expression of willingness to do business -> no legal consequences.