Summary Canadian Business Law - Chapter 5, ISBN: 9781772552812 BUSI2601 (BUSI2601)
7 views 0 purchase
Course
BUSI2601 (BUSI2601)
Institution
Carleton University (CU
)
Book
Canadian Business Law
This document provides a full chapter summary of chapter 5 in the Canadian Business Law textbook, tailored for BUSI2601 business minor course at Carleton University.
The chapter covers:
1. Intention to create a legal relationship
2. Offer & Acceptance of a contract, its lapse, revocation and ...
Summary Canadian Business Law, Chapter 5, ISBN: 9781772552812 BUSI2601
Summary Canadian Business Law, Chapter 7, ISBN: 9781772552812 BUSI2601
Summary Canadian Business Law, Chapter 8, ISBN: 9781772552812 BUSI2601
All for this textbook (11)
Written for
Carleton University (CU
)
Unknown
BUSI2601 (BUSI2601)
All documents for this subject (2)
Seller
Follow
marlymagharious
Content preview
CHAPTER 5
CANADIAN BUSINESS LAW
INTENTION TO CREATE A LEGAL RELATIONSHIP
PRESUMPTION - Legal assumption that is made, subject to a party proving otherwise
● Businesses understand that the promises they make to each other carry legal
consequences and that they may be sued if promises are broken
○ Presumption exists only between marketplace and business relations
● Intention to form contract may be rebuttable - capable of being refuted
○ Court does not need proof of entering contract, just presumes that both
parties had business intentions
●
OFFER & ACCEPTANCE
● Both parties must agree to the service and the contract terms
○ Process begins by 1 party setting up an offer and an unconditional
acceptance of that offer, by the other party - either verbal agreement or
signed document
● Disputes arise when the finality or conditions are desired to be negotiated by 1 party
● Disputes also arise if one party claims that it accepted the offer and enforces the
contract, while other party claims offer was no longer open for acceptance
● Must ask:
○ Was the offer open when it was accepted?
○ Was acceptance of the offer properly communicated?
LAPSE
● The specified expiry date and time of the offer
REVOCATION
● Party who extends the offer is entitled to revoke it at any time before it's accepted
● Revocation is the taking back an offer
● This makes sense in the voluntary sense of contracts - a business may reconsider
the wisdom of their offers at anytime until its accepted and keeps them flexible to
changing markets
● Exception: option agreement - agreement where a business/party gives something
of value to keep an offer open for a specific period of time
○ This in itself is a contract where there is an exchange of valuable mutual
promise
○ Best used when party needs time to conduct market research on the
economic advantages of the offer
○ Also used when party can't immediately line up their other related contracts
before accepting
COUNTEROFFER
● Proposal that accepts an offer on terms differing from those in the offer
, TERMS OF COUNTER OFFER FORMATION
WAS ACCEPTANCE OF THE OFFER PROPERLY COMMUNICATED?
1. A contract is formed when the party that accepts the offer communicates acceptance
to the party that makes the offer in the manner requested by the offering party
2. If the offer states that acceptance must be communicated in a specified form, only
that form of communication can create a contract.
3. Acceptance can be communicated by action alone, without requiring verbal or written
confirmation.
4. Acceptance by mail occurs when the party that accepts an offer puts the acceptance
in the mail.
5. Electronic acceptance occurs when it enters the information system used or
designated by the offering party and becomes capable of being retrieved and
processed by that party.
CONSIDERATION
● It's the “price” that each part is willing to pay for the contractual benefits they expect
to gain.
● A 1-sided promise does not meet conditions for a contract, and is not enforceable
EXCEPTIONS TO CONSIDERATION
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marlymagharious. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R167,58. You're not tied to anything after your purchase.
