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A contract is an agreement, supported by consideration and made with intentions to create legal relations. A valid contract in English Law means to offer and acceptance. It is an intention to create legal relations and of course consideration.
The contract element of the agreement is usually expressed in terms of offering acceptance. It is through that meeting of the minds of those two parties the consensus added them that meeting of the offer with the corresponding acceptance that constitutes the agreement.
An offer could be defined as a proposal or a promise by one person who is called the offeror in law to enter a contract on a particular set of terms with the specific intention of being bound by that promise as soon as the person to whom the promise is made. It is also called the offeree, and it signifies his acceptance.
In the context of invitation, it could be defined as a proposal or promise by one person who is called the offeror in law to enter a contract on a particular set of terms. This is set with the specific intention of being bound by that promise. It is readily accepted once the person to whom the promise is made called the offeree signifies his acceptance.
Contract Law is an objective standpoint, where there is an expression of willingness by the offeror to be bound by its terms once it is accepted by the offeree. Now then an offer may be made to an individual. It may be made to a group. It may be made public. So, for example, a reward for information or a reward for finding and returning a dog.
The origins of Contract Law:
Most of the rules of contract law date from the early nineteenth century.
The industrial revolution and laissez-fair economics.
Objectives of Contract Law
Contracts do not have to be in the form of writing. It is perfectly fine to have an oral or verbal contract.
Offer and Acceptance, these together form the contract, and it is better known as agreement.
So, if I go to offer someone to buy my mobile phone, I will make them an offer and then they can accept that and buy the phone from me. This is only the part of the equation. There is a couple of other things that need to be done. One of them is the intention to create legal relations. Thus, there should be an enforceable legal agreement. There must be a legal consideration. It is effectively an exchange of value associated with it.
What are the 3 main rules in contract law?
To have a legal and binding legal contract that must be enforceable are
- mutual assent,
- expressed by a valid offer and acceptance
- adequate consideration; capacity; and legality
How can a contract get converted into an agreement?
An offer may be written. It may be spoken; it may be implied by conduct now. One important point for law students to remember is that what amounts to an offer can and certainly does give rise to differences of opinion. So, for example, during the bargaining process, there may be a series of communication between the offer on one hand and the offered on the other as they move towards a final agreement. So, it may be difficult to be exactly sure whether a specific statement was an offer or whether it was only a part of continuing negotiations between the parties.
In an examination the examiner wants you to discuss the fine line distinction by using the cases and going to source for academic commentary in determining if a particular communication is an offer or not now, one possible approach in determining whether there is an offer is to examine whether they were expected to bargain further were the parties expected to bargain further or whether the communications made to that point showed a clear willingness to be bound.
If the poor or the other party agreed or assented now. This is easier said than done as the cases conflict at times in fact to understand the principle of the offer. Any discussion must consider the two contrasting cases of Stora and Manchester United City Council in 1974and given the Manchester City Council in 1979. Now both the cases are concerned with Manchester City Council’s policy of selling policy houses to its tenants who are living in them. Now councils in England tend to be the largest social landlords and in a particular area and at any time Manchester City Council was controlled by the Conservative party and this was the era when there was a Conservative Party Policy to make homeowners of their counts of tenants, so basically, the person who had been renting their properties now had the right to buy scheme making people owners of their property.
Why do we need contract law?
To make promises binding where would be if a party A could just renege upon their promises to party B. what if a building contractor suddenly decided that they were not going to turn up to construct the building, to construct a hospital, so there is a valid reason why we would want to have some sort of regulations to enforce those promises and to give the innocent party some sort of recourse. If those promises are broken but in fact, there is only one type of promise that will be enforced under English Law and that is a promise which is supported by consideration.
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