Chapter 6 Flashcards
contract
promise, or set of promises that the law will enforce
Formation of a contract
7 elements:
1) offer
2) acceptance
3) consideration
4) intention to create legal relations
5) capacity
6) legality
7) certainty of terms
Offer
- tentative promise made by one party, subject to a condition or containing a request to the other party
- must be definite and certain, and must be communicated to intended recipient
Standard Form Contract
- most common type of contract
- take it or leave it offer
- no negotiating over terms
Advantages and disadvantages of SFC
Advantages
- highly efficient
- fast and easy
Disadvantages
- inequality of bargaining power
- little to no room to negotiate terms
Unusual or unexpected terms must be pointed out during the time of the contract formation or the term will be struck from contract by the court
Counter offer
cannot revive offer once rejected, has to be presented as a new offer
Acceptance
- final unqualified consent to the terms of the offer
- must be communicated to offeror by word or conduct
Timing of Acceptance
revocation - offeror can revoke offer any time up to acceptance
- exceptions:
- where offeree has paid money to keep offer open
- where offer was made under seal
Communication of Acceptance
method of acceptance should be reasonable in circumstances and reasonable to the offer
Jurisdiction
Location where contract was formed is determined by where acceptance is accepted
Important in determining of what province or country’s laws will govern that contract