8. Contracts

Question 1

What is a contract?

Answer 1

A legally binding agreement between two or more parties.

Question 2

Name the three phases required for concluding a contract.

Answer 2

• Negotiation
• Conclusion
• Performance

Question 3

How is an offer defined?

Answer 3

An offer is a declaration that contains all relevant aspects of the intended agreement and ban be accepted by a simple “yes”
(Cannot be revoked)

Question 4

What are the 2 elements required for concluding a contract?

Answer 4

Exchange of two declarations:

• an offer
• the acceptance of that offer