Business - People in Business/Contract Law

Key Terms Definitions

Stakeholders + Example

Someone who is affected by the actions objecties and policies of a Business. - Investor,Consumer

Co-Operative Relationship

Stakeholders work towards a common Goal also known as mutual Benefit (Win-Win situation)

Competitive Relationship

Stakeholders work towards different goals-Employer and Employee ,dropping to minimum wage.

Contract

Legally binding agreement between Two or More Parties which is enforceable by law

Intention To Contract

Both Parties must intend to Create a Legally Binding Contract

Consideration

each Party must give something of value to the other party

Capacity to Contract

Legal ability to enter into a contract (not drunk)

Intention to contract

each party must have full intention to enter into a contract

Legality of Form

Contract must be drawn up in the corret legal format

Legality of Purpose

Contract must be created for Legal Purpose

Ultra Vires

Someone Acting outside of their legal power

Invitation to Treat

When you invite someone to make an offer.Items on Displays,such as items in a Shop window.

Termination- Performance

Contract is completed

Termination-Agreement

Both parties agreen to End the Contract

Termination- Frustration

Unforeseen event makes party unable to complete the contract

Termination-Breach of Contract

Contract ends if one party breaks their side of contract

Remedies-Compensation

Judge may order Party that cuased breach to pay compensation to Other party.

Remedies-Rescind the Contract

Judge Cancels the contract

Remedies-Specific performance

Judge orders party that breached their side of contract to cmplete their side of contract.