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6 Cards in this Set
- Front
- Back
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Contract |
An agreement between twoparties that is enforceable ina court of law. Agreement between the parties Completed negotiations Deliberately made Voluntarily made Between two or more competent persons Supported by mutual consideration Not necessarily in writing |
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Advantages of Contracts |
Permit both parties to rely on the terms they have negotiated and plan their business affairs accordingly Create binding promises that can be enforced in court If a dispute arises between the two parties, there are various options for dispute resolution. |
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Communication |
Start of the contractual relationship Objective standard test – How a “reasonable person” would view the conduct of the parties |
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Equal bargaining power |
The legal assumption thatparties to a contract are ableto look out for their owninterests. |
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Economic Breach |
Sometimes it is more financially rewarding to breach the contract in question than to perform it. |
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The parties must consider the following before suing: |
business relationships economic realities reputation management |
