BU231 Chapter Notes - Chapter 6: Standard Form Contract, Negative Option Billing, Posting Rule
Document Summary
Chapter 6 formation of a contract: offer and acceptance. Role of contract law: contracts are voluntary legal relationships, parties choose to make a contract and it is then when they become legally obligated to comply with its terms. Inequality of bargaining power or expertise between two parties results in unfair contracts: contract law empowers parties to create legal obligations that would otherwise not exist. The nature of contract law: contracts begin with a promise, contract law sets the rules for how ordinary promises become legally binding promises, there are four basic requirements to form a legally enforceable contract: Courts have sometimes held advertisements to be offers when their wording reasonably favoured the interpretation of a contract. This rule has triggered selling practices that tempt consumers to bind themselves to pay for goods they did not request. If the business falls within an area regulated by a government board, the terms of its contracts are subject to board approval.
