Business Law Chapter 10

Business Law Chapter 10 - Business Law Chapter 10...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Law Chapter 10 Introduction to Contracts Contracts: The Purpose of a Contract - Parties enter into contracts attempting to control future. They exist to make business matters more predictable. o Most contracts work out because parties fulfill their obligations, not all though Judicial Activism versus Judicial Restraint - In most cases, courts will generally but not always do what we expect o They will enforce a contract even it causes serious harm to another. This is called judicial restraint – a court’s reluctance/passive stance to interfere with a contract weather the deal of contract was foolish or not. Judges stance is that it is NOT their job to rewrite a deal that the parties crafted Judicial constraint makes the law less flexible, but more predictable - In other cases, courts practice judicial activism – a court will ignore certain provisions of a contract or an entire agreement if the judge believes that enforcing the deal would be unjust o A judge may also rewrite contract with no provisions if he believes that is the only way to avoid injustice. Ie: can be used in cases where one party deceives another However a judge MAY NOT diminish our ability to control our own future – which is the whole point of creating a contract. Judicial activism makes law more flexible but less predictable Issues and answers - A contract has 4 elements
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
o Agreement – one party must make a valid offer, and the other party MUST accept it o Consideration – there has to be bargaining that leads to an EXCHANGE between parties o Legality – the contract MUST be for a LAWFUL purpose o Capacity – parties must be adults of sound mind - Issues that raise questions in contracts are: o Consent – neither party may trick or force the other into the agreement o Written consent – some contracts must be in writing to be enforceable o Third party interests – some contracts affect people other than the parties themselves o Performance and discharge – if a party fully accomplishes what contract requires, his duties are DISCHARGED o Remedies – court will award money or other relief to a party injured by a breach of contract All Shapes and Sizes - Contracts can be large or small ie: Lockheed vs. Boeing or Roommates selling bike. - Contracts can involve public issues or private issues - Societal issues can SHAPE contract law. AND contract law can SHAPE society Contracts Defined - Contract law is a study in promises. It is a promise that the LAW will enforce o This is because we live in a complex society that conducts business in an infinite variety of ways. o
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 7

Business Law Chapter 10 - Business Law Chapter 10...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online