Task 1
“A contract may be defined as an agreement which legally binds the parties”. There are some key elements which are essential to form a valid and enforceable contract by the law. 1. Agreement
First of all, a contract must contain an agreement. An agreement is made of an offer and the acceptance of that offer.
An offer is defined as “a definite promise to be bound on specific terms”. The person who makes an offer is the offeror and the person to whom the offer is made is referred as the offeree. In other words, the relationship between the offeror and the offeree is determined through the communication made between them which indicate some specific terms. The offeror is prepared to be bound by these terms if the offeree accepts them.An offer can be express or implied from conduct (see case Textile Holdings Ltd v Spencer plc 1897).It is necessary to differ between an offer and an invitation to treat because an invitation to treat is only some kinds of a preliminary stage in forming an agreement where one party invites the other to make an offer. Usually, an offer need to be definite (although can be made to the public at large – see case Carlill v Carbolic Smoke Ball Co 1893) and addressed to a specific party while an invitation to treat can be indefinite.
“Acceptance is the unqualified agreement to the terms of the offer”. In other words, once the offeree has accepted an offer then he is unconditionally agreed to the precise terms of that offer. The acceptance can be oral or in writing or even expressed in some kind of action (see case Brogden v Metropolitan Railway Co 1877).An acceptance is normally not effective until it is received by the offeror.Notice that there must be some act from the side of the offeree to show his acceptance.Other parties cannot accept instead of the offeree. “Merely remaining silent cannot amount to an acceptance, unless it