Chapter6(Formation of a Contract: Consideration and Intention ) before an agreement is binding in law it must also have 2 primary elements:1. Consideration, and

2. Mutual intention to create legal relations

Bargain: Each party pays a price for the promise of the other Consideration: the price or value for which the promise of the other is bought.

Promisor: promise to pay money, deliver goods or provide servicesValid consideration must be:

Specific but not necessarily “adequate”

Must have some value

With reference to present/future promises

Not past consideration

Document Under Seal (Deed)

A seal represented a serious promise (a covenant), used in ancient times when population was illiterate

The use of a seal eliminates the requirement of consideration for a promise because the seal signified the act and deed of the convenantor

The seal must be placed on the document at the time of signing (cannot just print “seal” on the document): “conscious and deliberate effort” (SCC)

Business tender – offer under seal becomes irrevocable like an option

CHAPTER9 (The Requirement of Writing)

DISTINCTION BETWEEN SUBSTANCE AND FORM The Benefits of a Written Record The Form of a Contract A contract may be: terms entirely oral terms entirely written terms are a combination of oral and writtenLegislation Dealing with Writing 3 common types of legislation requiring written contracts: 1.The Statute of Frauds 2.The Sale of Goods Act 3. Consumer protection legislation All provinces impose writing requirements on contracts through some combination of these 3 statutes.

THE STATUTE OF FRAUDS Types of Contracts Affected by the Statute of Frauds Written evidence is required for 5 types of