Olivet Business School (OBS) will soon start teaching law of contracts to MBA students as part of its "Business Law" course.

Contract is a legal enforceable promise or agreement concerning sales or employment. Contract law determines what constitutes an offer or acceptance, enforceability of promises, performance of those promises and avoidance of those promises.

Contract law also provides rules to remedy situations when things do not go as planned, that is, when there is a breach of contract. This process is what makes free market society operate smoothly and underpins all the private and commercial transactions that take place every day.

Today, we can see contract law at the heart of every business transaction in society. We engage in contracts on a daily basis, like buying a cup of coffee at Starbucks or a MetroCard in the subway.

"As contract law serves as a protection in every legal agreement one makes, MBA students will learn and understand contract law that will help them safeguard interest during any business transaction," Program Director Dr. Hosea Zhang said.

Some of the topics that will be covered under law of contracts are Formation of Contract (offer, acceptance and consideration); Defense to Formation of Contract (including Statute of Frauds); Parol Evidence Rule; Risk of Loss; Warranties & Disclaimers; Performance an Excuse of Non-Performance; Rights and Duties of Third Parties (Beneficiary and Assignment of Rights); Remedies; Anticipatory Repudiation and Other Excuse for Non-Performance.