Management and Organizational Studies 2275A/B Chapter 6: CHP 6 (Contractual Relationships)

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Desmond Mc Keon

Document Summary

The contract: before a contract can be in place, the parties must be in agreement consensus of rights & obligations agreement takes form of offer and acceptance. Offer: offer promise to perform specified acts on certain terms. Includes price, terms of payments, delivery date, and other essential matters. Invitation to treat: an offer is different from a communication that merely expresses a wish to do business. Termination of offer: an offer can be accepted only if it is alive available to be accepted. If offer has been legally terminated, no contract can come into existence since one of the essential ingredients is missing including due to; revocation, lapse, rejection, counteroffer, death or insanity. Revocation: revocation withdrawal of an offer, offeror can revoke his offer at any time before acceptance by simply notifying the offeree of its withdrawal offer no longer exits and cannot be accepted. Revocation in the context of a firm offer.