Essay on Business Law Notes

Submitted By alexisyoo
Words: 435
Pages: 2

Promise: A declaration that binds a person who makes it (promisor) to do or not to do a certain act.
Contract: A set of promises constituting an agreement between parties, giving each a legal duty to the other and also the right to seek a remedy for the breach of the promises/duties.

Freedom of contract: Everyone's ability to enter freely into contractual agreements.

Objective Theory of Contracts: The view that contracting parties shall only be bound by terms that can objetively be inferred from promises made. Not by the personal or subjective intent/belief of a party.
Objective facts include
1. What the party said when entering into the contract.
2. How the party acted or appeared.
3. The circumstances surrounding the transaction.

Requirements of a Valid Contract:
1. Agreement: An agreement to form a contract which includes an offer and acceptance.
2. Consideration: Supported by legally sufficient and bargained-for consideration.
3. Contractual Capacity: Both parties entering into the contract must have the contractual capacity to do so, meaning that the law must recognize them as possessing characteristics that qualify them as competent parties.
4. Legality: Shit must be legal bruh

Defenses to the Enforceability of a Contract:
1. Voluntary consent: The apparent consent of both parties must be voluntary. For instance if a contract was formed as a result of fraud, mistake or duress (coercion) the contract may not be enforceable.
2. Form: The contract must be in whatever form the law requires i.e. some contracts must be in writing to be enforceable.

Types of contracts:
1. Bilateral contract: A type of contract that arises when a promise is given in exchange for a return promise.
2. Unilateral contract: A contract that results when an offer can be accepted only by the offeree's performance.
Requirements for…