5 - Contracts 1 -Student Version

5 - Contracts 1 -Student Version - Business Law Contracts...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Business Law – Contracts -voluntary exchange of promises -(Presumption) parties are legally involved
Background image of page 1

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

View Full DocumentRight Arrow Icon
Business relationships depend on contracts. Contracts are the foundation on which business is conducted.
Background image of page 2
What is a contract? Can a contract be formed orally? How many of you have entered into a contract in the last few days?
Background image of page 3

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

View Full DocumentRight Arrow Icon
Contracts A contract is a voluntary exchange of promises , creating obligations which, if defaulted on, can be enforced and remedied by the courts . Primary concern of the courts is to enforce the reasonable expectations of the parties. ..But , Is every agreement a contract?
Background image of page 4
If you are forced to make an offer ("your money or life") it is not a valid offer. Similarly if you are tricked into accepting, it will not be deemed acceptance of the terms offered. Why? - Remember a contract is a voluntary exchange of promises
Background image of page 5

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

View Full DocumentRight Arrow Icon
The law of contract , unlike many other laws, does not set out the rights and duties of the parties . Instead, it permits the parties to establish their own rights and duties by following a series of principles and rules for the formation of a contract .
Background image of page 6
Oral Contracts Chances are that you formed a contract today. Most likely it was formed verbally (i.e. orally) If you went to the supermarket and bought something, you formed a contract. Every time we buy a cup of coffee, buy a pen or have a plumber make repairs we’ve entered into a contract.
Background image of page 7

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

View Full DocumentRight Arrow Icon
Written Contracts Written contracts are almost always preferable to verbal contracts because a written document eliminates disputes about the terms and conditions of the contract or agreement. Also, some contracts are required to be in writing. Verbal contracts are risky because the parties’ memories or understanding of the deal may differ.
Background image of page 8
Contracts - A Checklist To be enforceable in court, a contract must have : C - Capacity L - Legality I - Intention C - Consensus (i.e. Offer and Acceptance match) C - Consideration (price paid for a promise)
Background image of page 9

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

View Full DocumentRight Arrow Icon
Capacity to contract Not everyone is permitted to enter into contracts that would bind them at law. Certain classes of promisors must be protected as a matter of public policy , either for reasons of their inexperience and immaturity , or because of their inability to appreciate the nature of their acts in making enforceable promises.
Background image of page 10
Capacity to contract contd. . Capacity= the ability to incur legal obligations and acquire legal rights . If a party to a contract lacks capacity, an essential element for a valid contract is missing . Those without capacity to contract include : Minors Persons intoxicated, or mentally incompetent (Adults of Diminished Capacity)
Background image of page 11

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

View Full DocumentRight Arrow Icon
Capacity to contract contd. . A minor or minor child in Canada is a
Background image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/01/2012 for the course ACF acc330 taught by Professor Hardy during the Spring '11 term at Seneca.

Page1 / 114

5 - Contracts 1 -Student Version - Business Law Contracts...

This preview shows document pages 1 - 13. Sign up to view the full document.

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