BUSAD 120 Chapter 5: BUSAD 120 - Chapter 5
Document Summary
For this to happen, there must be a clear meeting of minds of people concerned (consensus in idem), where both parties understand obligations and willingly choose to perform them. If invitation to make offer, merchant can accept or refuse. Offer may be described as a clear, precise, firm proposition containing a genuine intention to enter into a binding contract. Once a specific offer is made, acceptance will create a contract. Conditions for the formation of contracts: an exchange, of consents, between persons, having capacity to contract, in any form, unless a special form is required, a cause, an object, exchange: Express: clear indication on behalf of person (i. e. yes, i will buy this for ) Tacit: nothing is said, but person carries out action to show acceptance (i. e. sitting in a hairdresser"s chair, knowing you will be charged: consent: Cause doesn"t need to be stated, unless it"s illegal, and then contract would be nullified: object:
