MGMT 3100 Chapter Notes - Chapter 6: Contract, Dont
17 Jul 2016
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Chapter 6: formation of a contract offer & acceptance. Parties choose to make contracts and only then become legally obligated to comply. Empowers parties to create legal obligations that wouldn"t otherwise exist. Sometimes inequality of bargaining power or expertise results in unfair contracts. Contract law sets rules for how ordinary promises become legally binding promises. Contract: a set of promises that the law will enforce. 4 basic requirements to form a legally enforceable contract: Contract doesn"t come into existence until offer has been made by one party and accepted by the other party. Offer: a description of a promise or set of promises one party, offeror, is willing to make, subject to the willingness of the other party, the offeree, to agree to the same promises. When offeree accepts offer, offer is transformed into a contract. Promise no longer tentative; both offeror and offeree bound to carry out their promises.
