BU231 Chapter Notes - Chapter 5: Posting Rule, Fax, Negative Option Billing
Document Summary
Bu231 chapter 5: formation of a contract: offer and acceptance. Voluntary legal relationships not legal obligations parties choose to make a contract and then become legally obligated. Contract law empowers parties to create legal obligations that would otherwise not exist. Inequality of bargaining power or expertise between parties results in unfair contracts. Contracts begin with a promise but not all promises become contracts. Contract law sets the results for how ordinary promises become legally binding promises. Contracts: a set of promises that the law will enforce. 4 basic requirements to form a legally enforceable contract: offer, acceptance, consideration, and intention. Offer: a description of a promise one party is willing to make, subject to the agreement of the other party. Offeree: person to whom the offer is made. When offeree accepts offer by agreeing to description of promises or requests, the offer is transformed into a contract. Advertisements are offers when their wording reasonably favoured this interpretation.
