Offer and Invitation to Offer in Contract

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a) The instant case is related to offer and invitation to offer in contract. To
form an offer, there must be an intention to create a contract. It means
the willingness of the party to enter into a valid contract with a particular
person or class of persons as seen in the case of
Brambles Holdings
Limited v Bathurst City Council [2001] NSWCA 61, Court of Appeal
(NSW). Invitation to offer means inviting someone unknown in public to
make a proposal in response to the invitation.
b) Contract: A contract is said to be an agreement that is legally binding as
well as it controls the rights and duties of the parties to the agreement. It
is said to be a promise or group of promises which is binding legally on
the parties to it. The elements are consideration, agreement, intention,
certainty and capacity.
The agreement consists of offer and acceptance as seen in
R v
Clarke [1927] HCA 47, (1927) 40 CLR 227. Consideration is the
second element of contract which can be anything from money to any
service as seen in
Woolworths Ltd v Kelly (1991) 22 NSWLR 189. In
addition to this, the parties must possess the capacity of entering the
contract. Mentally impaired persons, drunks or minors lack the capacity.
L+CL / File Note / 1
Created: 18-09-2015 // Updated: 20-12-2022