B101 a binding agreement or a contract?

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3 comments

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    A.S.

    It's a contract because it is legally binding. A contract is a type of agreement. It is an agreement, a legally binding agreement. Which technically makes it a contract.

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    Kurt Fanderclai
    Don't get confused by the names -- for the purposes of the exam (and elsewhere), the words get used interchangeably. 
     
    More importantly, it's not what you call it that matters, but rather what criteria does it satifsy that will make it binding -- or not. 
     
    In one form or another, the criteria are as follow:
     
     
    "There are six basic requirements in a legally enforceable contract:
    • An offer.
    • An acceptance.
    • Competent parties who have the legal capacity to contract.
    • Lawful subject matter.
    • Mutuality of obligation.
    • Consideration."

    However, for the most complete understanding, always consult The Oracle.  Read Chapter 17 in the AHPP.  See page 1041.

     

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    June Wang

    thank you AS & Kurt!!!

     

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