Legal Relations Chapter 5

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.

• Agreement between the parties
• Completed negotiations
• Deliberately made
• Voluntarily made
• Between 2 or more competent persons
• Supported by mutual consideration
• Not necessarily in writing

Legal assumption that parties to a contract are able to look after their own interests.

• Leases
• Sales contracts
• Load contracts
• Supply purchase contracts
• Employment contracts
• Confidentiality agreements

• 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.