CONTRACT LAW REVIEW NOTES
FORMATION OF A CONTRACT
Contract is:
• An agreement between 2 parties
• Legally binding
• A promise or a set of promises which are enforceable in law
Formation of a Contract:
1. Offer
• A description of a promise one party is willing to make, subject
to the agreement of the other party
• Must be definite and certain
• Cannot be vague, must be some level of certainty
• Must be communicated to the intended recipient
• It is intended to be binding on both of the parties as soon as it is
accepted
o Example: Ill pay $500 for your make/model/type of car
on this date and it becomes an offer
o Vs. Hey ill buy your car, this does not make it an offer
• Offeror: The person making the offer
• Offeree: The person to whom the offer is made
• Standard Form Contract (SFC)
o An offer prepared in advance by the offeror, including
terms favourable to the offeror that cannot be changed
by the offeree, but must be accepted as is or rejected in
their entirety, also known as a contract of adhesion
o The most common type of a contract
o The “Take it or leave it” offer
o No room for negotiations over terms of the contract
o Most contracts are verbal and we don’t realize it
▪ E.g. Buying a coffee at Starbucks is a verbal contract
o Advantages
, ▪ Highly efficient
▪ Fast
▪ Easy
FORMATION OF A CONTRACT
Contract is:
• An agreement between 2 parties
• Legally binding
• A promise or a set of promises which are enforceable in law
Formation of a Contract:
1. Offer
• A description of a promise one party is willing to make, subject
to the agreement of the other party
• Must be definite and certain
• Cannot be vague, must be some level of certainty
• Must be communicated to the intended recipient
• It is intended to be binding on both of the parties as soon as it is
accepted
o Example: Ill pay $500 for your make/model/type of car
on this date and it becomes an offer
o Vs. Hey ill buy your car, this does not make it an offer
• Offeror: The person making the offer
• Offeree: The person to whom the offer is made
• Standard Form Contract (SFC)
o An offer prepared in advance by the offeror, including
terms favourable to the offeror that cannot be changed
by the offeree, but must be accepted as is or rejected in
their entirety, also known as a contract of adhesion
o The most common type of a contract
o The “Take it or leave it” offer
o No room for negotiations over terms of the contract
o Most contracts are verbal and we don’t realize it
▪ E.g. Buying a coffee at Starbucks is a verbal contract
o Advantages
, ▪ Highly efficient
▪ Fast
▪ Easy
