...Rules of offer and acceptance in a contract Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to create legal relations. Offer and acceptance analysis is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, identifies a moment of formation when the parties are of one mind. ------------------------------------------------- Offer[edit] Treitel defines an offer as "an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed", the "offeree".[1] An offer is a statement of the terms on which the offeror is willing to be bound. It is the present contractual intent to be bound by a contract with definite and certain terms communicated to the offeree. The expression of an offer may take different forms, such as a letter, newspaper advertisement, fax, email and even conduct, as long as it communicates the basis on which the offeror is prepared to contract. Whether the two parties have reached agreement on the terms or whether a valid offer has been made is an issue which...
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...Contract Law Notes Contracts ‘A’ Offer - Bilateral contracts - Unilateral contracts - Offers to the public at large What is an offer? - Mere puff - Supply of information - Invitation to treat Categorizing transactions - Advertisements a) Advertisements in a catalogue or a curricular b) Advertisements in newspapers or magazines c) Advertisements appearing on the internet d) Display of goods - Auctions a) Advertisement of auction b) Auctions with reserves c) Auctions without a reserve - Tendering - Standing offers ➢ Options Communication of an offer Termination of an offer - An offer may be terminated by a) Revocation by the offeror b) Rejected by the offeree c) Lapse of time d) Failure of a condition subject to which the offer was made e) Death Acceptance Requirements of acceptance Acceptance must correspond to offer - Offeree must have knowledge of and act in reliance to an offer Page 9 Page 9 Page 10 Page 12 Page 13 Page 14 Page14 Page14 - A counter offer is not acceptance - Acceptance must be unqualified - Mere enquiry does not constitute acceptance Notification to the offerer of the fact of acceptance - Method of acceptance a) Method of acceptance stipulated by offer b) Acceptance by silence c) Acceptance by conduct - Instantaneous communication: Acceptance must be communicated a) General rule b) Meaning of instantaneous...
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...Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by one person to another of their willingness to contract on certain terms without further negotiations. A contract is then formed if there is express or implied agreement. A contract is said to come into existence when acceptance of an offer has been communicated to the offeror by the offeree. One party, the offeror, makes an offer which once accepted by another party, the offeree, creates a binding contract. The Key concepts in relation to offer and acceptance include the distinction between an offer and an invitation to treat, The case of Carlill v Carbolic Smoke ball co. is...
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...Clarification of Rules of Acceptance in Making Business Contracts Dr. Md. Abdul Jalil Associate Professor of Law Department of Business Administration, Faculty of Economics and Management International Islamic University Malaysia (IIUM) E-mail: abduljalil@iiu.edu.my, abd_jalil2@yahoo.com Abstract Business firms and Business corporations enter into thousands of contracts everyday. Making a formal and written contract is very important for business corporations and firms although oral contracts are accepted and recognized by law. There are certain rules on making a valid formal contract. If the business firms do not have knowledge of those contract formation rules and they make contracts in ignorance of those rules, their contracts would be liable to be declared as null and void by the court of law if it is referred to it to determine its validity or to get a remedy for breach of contracts by one of the parties in the contract. In this paper I have not discussed all the elements of a valid contract. I have discussed only one of the fundamental elements of a valid contract that is ‘acceptance’. In a business contract, there must have be an ‘offer’ and an ‘acceptance’, to make a valid contract, if not the contract will not be valid, recognized and enforceable in the court of law. The objective of this paper is to clarify the rules of making a valid ‘acceptance’ which may lead to making a binding contract between the parties. Keywords: Offer, Acceptance, Rules of acceptance, Communication of...
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...Element of contract The objectives of element of contract are to explain the requirement of a valid offer and acceptance which lead to the formation of a contract provided other essential elements, In other word intention to create legal relations and ,in most cases, consideration are also present. problem also arise in connection with the need for writing in some cases and the capacity of the parties. That it decides that where an offer is in the form of a promise for an act, the performance of the act is the acceptance and that offers of this type may be made to a particular person or to the world at large ,In other word to any unmentioned person or persons. Definition of contract A contract may defined as an agreement enforceable by law between two or more persons to do or abstain from doing some act or acts, their intention being to create legal relation and not merely to exchange mutual promises. I order to decide whether a contract has come into being, it is necessary to establish that there has been agreement between the parties .In consequence, it must in general be shown that an offer was made by one party(called the offeror )which was accepted by the other party(called the offeree).i Offer is one of the elements that make for a valid contract, and is the main focus of our lesson.there are six elements to a contract. These elements include, offer, acceptance, consideration, capacity, form a contract Offer Offer is an announcement of a person willing to...
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... Identify the essential elements required for there to be a valid contract Course : Diploma in Business Administration (International Business-DBID2 1501A) Module : Introduction to Business Law Name : FIN : Lecture : M. Lukshumayeh Due date: 18th June 2015 Table of Contents: 0 Introduction.......................................................................................1 1.1 what is a contract ？...................................................................1 1.2 The difference between an agreement and a contract ................1 1.3 The elements of a valid contract..........................................2 2.1 Offer...................................................................................................2 2.1.1 The definition of an offer .......................................................2 2.1.2 Two types of offer.................................................................2 2.1.3 Rules relating to offer ..........................................................3 2.1.4 An offer distinguished from an "invitation to treat".............3 2.2 Acceptance.......................................................................................3 2.2.1 The concept of acceptance ...................................................3 2.2.2 Rules relating to the acceptance............................................4 2.3 Intention to create...
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...research after receiving your mail last week regarding some questions of the postal rule of acceptance and the case of Masters v Cameron (1954) 91 CLR 353. After researching those issues, and based on acceptance set out below, I believe that you will obtain some exact concepts of acceptance on the contract. Thus, I will explain the postal acceptance rule and whether it still operates in Australia or not, discuss how businesses generally modify the postal acceptance rule, and conclude the case of Masters v Cameron more fully below as I understand them. * Postal Acceptance Rule The postal acceptance rule or the mailbox rule, created in 1818, is a term of common law contracts and affect communication of acceptance. It is defined as acceptance by post has been requested or use an appropriate and reasonable means of communication between the parties, then acceptance is taken effect immediately upon the letter posted. This rule determines the timing of acceptance of an offer when mail is concerned as the medium of acceptance. The general principle is that a contract is formed when acceptance is actually communicated to the offeror. Thus, an offer made by letter is not effective until or unless received by the offeree. Acceptance is effective as soon as it is posted. The major case in the postal acceptance rule is Adams v Lindsell (1818) B & Ald 681 that a contract was formed when the acceptance letter was posted. As the case described, Adams posted a letter to Lindsell, offering...
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...whether there is a valid contract or the offer may be terminated. In order to the contract being valid and enforceable, there is a need for the conduct of an offer and an acceptance. Rule For an offer to be valid, it contains some rules, including lapse of time. When an offer is made, it does not last forever. An offer stated to open for a specific period, lapse if the there is no acceptance within that time. If there is no set time for acceptance is stipulated in the offer, the implication of lapse will be exercised after a reasonable time, depending on the facts and circumstances in each case. (see Ballas v Theophilos (No2) (1957) 98 CLR 193; [1957] HAC 90). If the acceptance is come after the offer has lapsed, the acceptance will not be valid. Application In this case, Chan offers to sell his car to David and David asked for some time to think about it. It can be noticed here that David gets back to Chan after long time thinking, which caused the offer lapse. Moreover, there is no binding options about specific period is stipulated to keep the offer open for offeree. The acceptance is not valid because the offer has been terminated due to the lapse of time. Conclusion There is no legally binding contract which has been formed between Chan and David. Case 2 Issue This problem indicates the issue about breach of contract. However, breach of contract only occurs when a legal contract has been formed. Therefore, a second issue is also addressed, whether a contract is valid. In terms...
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...Elements of a Contract BUS 670: Legal Environment February 06, 2012 In a legal element of a contract, there are necessary to form binding contracts that are usually described in the following. These are an offer, an acceptance in strict compliance with the term of the offer, and legal purpose or objective. The example that is going to be use would be the steps to valid and enforceable real estate contract. In an offer, it’s a written or verbal statement by any party to express there intent to enter into a contract under certain terms (Schecter). These can be negotiated, re-negotiated, or withdrawn at any time prior acceptance. Once the offer is accepted and the contract is signed then will be known as the considered party to the contract and you must perform as agreed on the contract that you signed. An example of an offer would come from the steps to valid and enforceable real estate contract so it would be the offeror in which a party who present an offer to another party (BiggerPockets). Then the offeree is the party that receives the offer from the other party so there the offer would be from the offeror making an offer prepares a written contract, signs it, and then sends it to the offeree (BiggerPockets). The offer may terminate upon either an acceptance of the offer, a counteroffer, the expiration of a time limit, the withdrawl of the offer before acceptance, the offeree's failure to accept...
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...an ‘invitation to treat’ or is it an offer? Invitation to treat is defined as, inviting public to make an offer. In this case it is an invitation to treat because it is made advertisement in the star newspaper is inviting whoever is interested in buying his van to make an offer. All advertisement are invitation to treat Majumder vs Attorney 1967 and Pattridge v Crittender 1968 . The main issue in this case is who has the valid contract and does Elaine, Fazi and Gary have any basis to sue Danny for breach of contract, or is Harry’s offer to buy a van for RM18.000 valid? Definition of a contract Section 2(h) of the Contract Acts 1950 “An agreement enforced by law is a contract” * The word ‘contract’ in a legal sense refers to an agreement between two or more parties that is legally binding between them * All contract must be made upon an agreement The essential elements of a contract 1. Proposal (offer) 2. Acceptance 3. Intention to create legal relations 4. Consideration 5. Certainty 6. Capacity 7. Free consent The proposal (offer) Section 2(a) of Contract Act 1950 The Offer is defined as; “When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal”. Communication of proposal according to the law Section 9 of the Contract Act 1950: A valid proposal can be made...
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...business law and elements of contract formation! ! ! ! ! Useful for :! • Business relationships depend upon legally binding agreements! • Being aware of contract traps (avoid business troubles)! Law > Contract Law > French contract Law > International Contract Law (comparative law / Unidroit principles / Vienna Convention) > Common Law ! What is a contract law?! 3 main ideas = A contract is act of Freedom / of Willingness / of Foreseeability! 2 main principles = Principle of obligatory force / of good faith! Problems when negotiating a contract :! Is the negotiator empowered?! Severability or not?! Confidentiality or Non-disclosure agreement! ! A Contract is an agreement between 2 or more parties that is binding in law! ! When does a contract come into force? => Agreement on essential terms! ! BEFORE : Elements of contract formation! ! Offer and Acceptance ! ! ! An offer accepted is a contract / A statement of willingness to contract on specified terms! • Express / implied offer! • Adressed to one particular person, a group of persons, or the world at large! • Offer and Invitation difference to treat (= advertising)! Revocation of an offer : ! • Withdrawal of the offer : An offer may be withdrawn at anytime before acceptance! • Lapse of time :! • Where a time-limit : the offer automatically falls on the expiry of that time-limit! • Where no time-limit : An offer only remains open for a reasonable time! • Rejection by the offeree! • Counter-offer! ! Death of one of...
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...Employment Contract Deidra Lynn McIntosh BUS 670 Leah Westerman April 22, 2013 In today’s economy, most people are so happy when they get a job they sometimes overlook the paperwork they’re signing and don’t actually read the fine print. You may think you’re signing a contract, but really you’re accepting a job with a specific title, job description, stipulations and salary. The economy is structured on the freedom to draw up a contract with a system of laws that can be enforced. Contracts that are freely entered into are not always read carefully by the signer. The signer may not be aware of the elements required to make the contract enforceable (Seaquist, G. and Coulter, K.). For example if the Fabulous Hotel hires you as head chef under a two year employment contract. If you don’t read the contract carefully then you will not know that in the small print it says “The below signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ”. Therefore, you can’t work for another hotel in the same metropolitan area for two years there are several items that makes this contract enforceable. The elements of a contract will include offer, acceptance, and legal consideration just to name a few. The offer expresses the willingness of both parties entering into a contract. Most of the time the offer is dated and will expired at the end of that date. Moreover, if the date is not there the contract is valid...
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...two elements – one offer and the other acceptance. Thus offer is the foundation of any agreement. “When one person signifies to another his willingness – 1 to do or to abstain from doing anything, 2 with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.” The person who makes an offer is called “Offeror” or “ Promisor” and the person to whom the offer is made is called the Offeree” or “Promisee”. Example Mr. A says to Mr. B, “Will you purchase my car for Rs.1,00,000?” In this case, Mr. A is making an offer to Mr. B. Here A is the offeror and B is the offeree. Essentials elements of an offer:- (1) There must be two parties. (2) The offer must be communicated to the offeree. (3) The offer must show the willingness of offeror. Mere telling the plan is not offer. (4) The offer must be made with a view to obtaining the assent of the offeree. (5) A statement made jokingly does not amount to an offer. (6) An offer may involve a positive act or abstinence by the offeree. (7) Mere expression of willingness does not constitute an offer. A tells B’ that be desires to marry by the end of 2008, if does not constitute an offer of marriage by A’ to B’ A further adds will you marry me. Then it become offer. Legal Rules as to valid offer:- 1. Offer must be communicated to the offeree: The offer is completed only when it has been communicated to the offeree. Until the offer is communicated, it...
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...Lecture 2 – Offer & Acceptance Principles of contract law: Contract Formation - How a Contract is Made Terms - The Substance of Contract Vitiating Factors - Factors which Undermine a Contract Discharge - How a contract is fulfilled or ended Remedies - The Cures for a Breach of Contract For a contract to be legally binding, it has to fulfill 4 key elements: 1. Offer 2. Acceptance 3. Consideration 4. Intention to create legal intentions A. TYPES OF CONTRACT (pg 60) • Simple Contacts o Written o Oral • Special Contracts o Contracts by deed or contracts under seal o Always in writing o Written document is called a deed o Contracts under seal do not require consideration to be enforceable Written and Oral Contracts (pg 60) (1) Oral Contracts (Parol Contracts) o Difficult to ascertain the precise terms of the contact in event of dispute (2) Written Contact o Useful as it provides evidence of the parties’ contractual obligations o Forefront Medical Technology (Pte) Ltd v Modern Pak Pte Ld (2006) o Contracts for certain transactions must be evidenced by a written note of memorandum otherwise they are unenforceable Eg. Assignment of copyright and transfer of real property # NOTE: Parol Evidence Rule Primacy of a written agreement over oral statements : Oral (Parol) evidence will not be admitted in a court action to add to , vary, amend or contradict a written contract - Evidence Act S94 – Engelin Teh Practice LLC v Wee Soon Kim Anthony (2004) *Exceptions*: Extrinsic...
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...OFFER AND ACCEPTANCE OFFER When one party expresses interest to buy or sell an asset from another party. The offering price is often the highest the buyer will pay to purchase an asset, and the lowest that the seller will accept. The person that makes offer is called "offeror or promiser".The person to whom offer is made is called "offeree". Offer can also be called a "Proposal". EXAMPLE: 1) Ali offers to sell his watch to Ashraf , here Ali is making an offer to Ashraf. 2) When purchasing a house, prospective buyers will make an offer to the seller, and will often list the highest price he or she is willing to pay. However, if another prospective buyer enters the scene and a bidding war ensues, each buyer will continue to bid until his or her maximum price level is attained OFFER and its types : Express Offer: An offer may be made by express words, spoken or written. Suchan offer is known as an express offer. Implied Offer: An offer may also be implied from the conduct of the parties or thecircumstances of the case. This is known as implied offer.For example, An offer by the Transport Co. to carry passengers for a certain fare. Specific Offer: When an offer is made to a definite person, it is called specific offer. General Offer: When an offer is made to the world at large, it is called as generaloffer. A mere making of an offer does not...
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