{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

canadian business and consumer law

canadian business and consumer law - MCS*3040 Business and...

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

View Full Document Right Arrow Icon
MCS*3040- Business and Consumer Law CHAPTER 6- FORMING CONTRACTUAL RELATIONSHIPS The contract - there are 4 basic elements of a contract 1. an agreement ; an offer and an acceptance 2. complete ; certainty 3. deliberate; intention to create legal relations is present 4. supported by mutual consideration - all sets out legal ingredients that that transform agreement (non- enforceable ) , to an enforceable contract An agreement - first step to entering contract; reached consensus as to rights and obligation - an agreement comprises of an offer and an acceptance Offer Offer: a promise to perform specified acts on certain terms - only complete offer can form basis of contract; all essential terms must be set out or contract will fail for uncertainty Invitation to treat: an expression of willingness to do business - offer is form of communication that expresses a wish to do business; in law, latter form of communication is called invitation to treat and has no legal consequences - whether communication is offer or invitation to treat is dependent on speaker’s intention and it is objectively assessed - common law devised to assess/ classify whether communication is an offer or an invitation to treat - some contracts formed after protracted discussion, others ( like purchasing an item in a store) are formed without any negotiations whatsoever Standard form of contract: a ‘take it or leave it’ contract, where the customer agrees to a standard set of terms that favors the other side. - sales and rental businesses require customers consent to standard set of terms developed by business over years of operation - regardless of bargaining precedes contract or not, law expects people to take care of themselves - when negotiations complex, important for parties to know when offer is established; because at moment offer made, legal consequences follow - two people in contract, offeror and offeree Oferror: the person who makes an offer Offeree: the person to whom an offer is made Termination of Offer - offer can only be accepted if it is still ‘alive’ ( available to be accepted) - if offer legally terminated, no contract can come to existence, since offer is missing
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
- offer can be terminated of ‘ taken off the table’ by any of following events; 1. revocation 2. lapse 3. rejection 4. counteroffer 5. death or insanity revocation revocation: the withdrawal of an offer - offeror can revoke his offer any time before acceptance by notifying offeree CASE(123): Bigg v. Boyhd Gibbins ltd., (1971) 1 A11 E.R 183(C.A() Factual background: - plaintiff and defendant negotiated extensively for purchase and sale of real estate by plaintiff to defendant - plaintiff sent out letter with counter offer to invitation to treat - defendant accepted offer in letter - defendant denied contract formation The legal question: - is there a contract between the parties? Resolution:
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

canadian business and consumer law - MCS*3040 Business and...

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

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