Asked by
Jessica Rexrode
on Dec 18, 2024
Verified
Lev and Drew have been negotiating verbally and in writing concerning the purchase by Lev of a number of items manufactured by Drew's company. Lev insists that they have only reached the stage of having an agreement in principle but Drew says they have a binding contract. If one of the terms they agreed upon verbally was that they would execute a written contract, the court will hold that a contract does exist.
Agreement in Principle
An initial acceptance indicating a preliminary agreement before the details are finalized.
Binding Contract
An agreement between two or more parties that is legally enforceable in a court of law.
Verbal
Pertaining to words or spoken communication, often used in the context of agreements or contracts.
- Master the basic concepts and requirements vital for the development of legally valid contracts.
- Comprehend the consequences and judicial repercussions of spoken agreements in the context of contract law.
Verified Answer
JM
Learning Objectives
- Master the basic concepts and requirements vital for the development of legally valid contracts.
- Comprehend the consequences and judicial repercussions of spoken agreements in the context of contract law.