Contract Law: Offer and Acceptance

Contract Law

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................9

INTRODUCTION
Contract law comprises of legal provisions governing the contracts made between two
parties containing terms and conditions (McKendrick, 2014). A contract forms legal obligations
which should be protected by the laws in order to avoid any conflicts or disputes at a later date.
There are some essential elements which should there to form a valid contract. It is important
from the point of view of business as well as personal life because a person can seek legal
actions for the breach in the terms and clauses mentioned in the contract. There are different
remedies and solutions provided in Contract law which can resolved with the application of legal
provisions. The laws applicable in United Kingdom include amendments which should be
applied while forming a contract. Furthermore, it has different types which can be executed in
different occasions. In this report, focus has been given on the “offer and acceptance” component
of a contract. It has been discussed in detail along with principles of agreement, rules of offer
and acceptance, rules and judgements given by judges followed by relevant case laws. It is
important to understand the exact meaning and application of these terms so that no ambiguity
can arise in future. Also, it is beneficial for the parties to be sure about the transactions and deals
as there are legal consequences for contravention and breach of any of the terms.
MAIN BODY
A contract is an agreement between two parties creating a legal obligations for them and
is legally enforceable. When it is executed, the people involved in the contract has to perform the
acts mentioned in there. Generally, it is formed for buying and selling of goods, property etc. it
can be formed for personal as well as commercial purpose depending on the requirements of
individuals. There are variety of elements which are essential for making a valid contract. These
are offer and acceptance, intention to create a legal relationship, lawful consideration, competent
parties, free consent, lawful object ans not expressly declared void. In this assignment, offer and
acceptance are going to be discussed which is the first element of a contract. It is important to
find out that all the situations in which a contract is formed to determine whether it comprises of
a valid offer and acceptance or not (Cartwright, 2016). In order to understand the concept of the
above mentioned element, it is imperative to go into the details of agreement, offer and
acceptance. A person before executing a contract should know basic rules of these three
component as without this no legal actions can be taken in case of any issue or dispute. In
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addition to this, there are case laws which have been resolved in the past and can be used in
getting clarity about the same.
Rules of agreement
Agreement refers to an arrangement wherein the parties agree to perform the acts
according to terms and conditions. In order to execute a contract, an agreement should be there
which is enforceable by law. It is usually informal in nature which is accepted by mutual
consent. Also, it cannot be challenged legally because there is no legal effect to it. It can be
formed orally or in writing. Furthermore, there are some basic principles which govern the
agreement and without incorporating them it cannot be formed. The first principle being offer
which is made by one person to another. It reflects the desire of both the parties to get into an
informal agreement to carry the activities. The second principle being acceptance which occurs
when an the person to whom offer is made, agrees to perform the activities mentioned in the
agreement. The third and last principle is mutual consent which is done after making some
adjustments and negotiations in order to include terms and conditions which are acceptable by
both the parties. In other words, there should a be mutual consent and if one party agrees to do
the act but other party denies for such agreement, then it cannot be formed. Also, an agreement is
necessary for a contract and all the contracts are agreement, but all agreements are not contract
(Chen-Wishart, 2012).
Rules of offer
Offer in a contract refers to a promise made by one person who is known as 'offerer' to
another who is called 'offeree'. It can be made in verbal form as well as in written basis by
mentioning terms and conditions in detail. It is an invitation to the offeree to enter into the
contract. It is mainly of two types viz. General offer which is made to the wide public of group
of people and specific offer is the one made to sole person. However, in both the cases it must
fulfil essential requirements in order to be termed as valid. The essentials are that it must be
communicated by the offerer to the offeree. It must be made with the intention to get the concept
or acceptance of the other party to whom the offer is made. The parties have the capabilities to
create legal relations which is a two-way process. And lastly, there must be language which is
understandable to both the parties along with this, there should be clarity and certainty in the
terms and condition mentioned in the offer. Furthermore, it may be implied as well as expressed
wherein the former involves a conversation and latter does have any conversation. Consent to the
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