Legal Relations Chapter 5

  1. Define Contract.
    Deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration, to do some act voluntarily, and which agreement is enforceable in a court of law.
  2. What are the Elements of a Contract?
    • Agreement between the parties
    • Completed negotiations
    • Deliberately made
    • Voluntarily made
    • Between 2 or more competent persons
    • Supported by mutual consideration
    • Not necessarily in writing
  3. Define Bargaining Power.
    Legal assumption that parties to a contract are able to look after their own interests.
  4. What are some examples of business contracts?
    • Leases
    • Sales contracts
    • Load contracts
    • Supply purchase contracts
    • Employment contracts
    • Confidentiality agreements
  5. What are the advantages of a contract?
    • Permits both parties to rely on the terms they have negotiated and plan their business affairs accordingly.
    • Create binding promises that can be enforces in court.
    • If a dispute arises between the two parties, there are various  options for dispute resolution.
Card Set
Legal Relations Chapter 5
Legal Relations Chapter 5