A contract is a legally binding agreement between two or more persons for a particular purpose. It is an instrument for the economic exchange of goods and services. In Canada, contract law is administered both in common law and, in Quebec, civil law.
In Canada's common law provinces and territories three components are required for the formation of a valid contract: offer, acceptance, and consideration. Additionally, the parties themselves must have the legal capacity and the intention to create legal relations.
In order for an agreement to be considered a legal contract, there are some essential elements that must be present. There must be an intention to contract, an offer to contact and an acceptance of that offer, and consideration. In addition, the terms of the contract must be clear in order to be enforceable by a court.
Types of Contracts
The four most common types of contracts are: 1. the contract of sale, whereby a person acquires the ownership of property in return for payment; 2. the leas… Contracts Under Civil and Common Law
Unlike other agreements, a contract is a legally binding promise. If one of the parties fails or refuses to fulfil its promise without a valid reaso… Conditions
For a contract to be valid and therefore legally binding, five conditions must be met. First, there must be the mutual consent of both parties. No on… Sanctions
Parties to a valid contract are always bound by law to carry out their promise. Should they fail to, the other party is free to go to court to force them to comp… Consumer Protection and Good Faith
Increasingly, provincial and federal legislatures are acting to protect citizens against certain abusive commercial practices. Consumer protection law, in w… 