What you need to know before signing on the dotted line! http://toolkit.smallbiz.nsw.gov.au/part/5/35/167 Canadian Contract Law What you need to know before signing on the dotted line!

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A Contract Is…… A legally binding agreement between two of more persons for a particular purpose, aka. a legal bond. A service, offer or the promise to refrain from something in exchange for compensation. An instrument/tool for the economic exchange of goods and services. http://www.thecanadianencyclopedia.ca/en/article/contract-law/

The 5 Conditions of Contract Law Mutual consent by both parties. Contractual Capacity. Agreement “Lawful cause” or “valuable consideration”. Compliance to certain circumstances established by law.

Mutual Consent Contract is not binding if the consent was given by error, under physical or moral duress.

Contractual Capacity Before entering into a contract, both parties must be able to prove they have the capacity required. Both parties must be: Of legal age Of normal intelligence Of sound mind

Agreement The contract must have a purpose, therefore must concern a specific good or service.

Lawful Cause and Valuable Consideration “…the promise made must be serious and each obligation assumed by one of the parties must find a corresponding, but not necessarily equivalent or equal, promise made by the other party.” http://www.thecanadianencyclopedia.ca/en/article/contract-law/

Compliance While not necessary in all contracts, the compliance to certain formalities provided by law is extremely important because there can be serious consequences for the parties. Ex. A valid written contract, or nondisclosure/confidentiality agreements.

Discussion: Have you ever been party to a contract?