UNIT 1 - ELEMENTS OF CONTRACT FORMATION
1. Offer and acceptance
SUBJECT TO CONTRACT
2. Intention to create legal relationships This phrase indicates the initial bid or
3. Consideration agreement is not a final commitment and
both parties still need to work out the
1. AGREEMENT specifics before a legal contract is formed
Offer + acceptance = agreement
Offer - a willingness to contract on certain terms INVITATION TO TREAT
with the intention that it shall become binding once
accepted by the person whom it is addressed
Acceptance - an agreement to the terms of the
offer Display of goods for sale
• General rule - displaying goods (in shop win
to treat - Pharmaceutical v Boots [1953], F
2. INTENTIONS • Customer makes an offer to buy goods & th
• General rule not accepted when shop's inte
• Commercial agreements - strong from the display e.g, chocolate is yours if yo
presumption that parties intend the
agreement to have legal consequences Advertisment
• Social/domestic agreements - • Same general rule applies to advertisement
presumption that the parties did not intend • General rule can change if advert shows a c
the agreement to have legal consequences by those who perform the action mentioned
,UNIT 2 - ACCEPTANCE & AGENCY
ACCEPTANCE
Acceptance: the unqualified ✅
expression of assent to the terms
DOES OFFEREE NEED TO
KNOW OF OFFER TO ACCEPT
Offe
Offe
of the offer
•English law requires the offeree to
know of the offer in order to validly
accept it however, Gibbson v Proctor
SILE
• Cross offers don't give rise to
!
[1891] shows knowledge isn't always
contracts - Tinn v Hoffmann &
needed.
Co [1873]
• offeree should not be able to claim a
• An offer can only be accepted if it
contract if unaware of offer - Williams
has been made directly to the
v Carwardline [1833]
person accepting it - Hall v
Maritek Bahamas Ltd [2015]
Unilateral contract
• the principle of counter offer
• the offeree should be able to claim a
terminates original offer - Hyde v
contract even if they didn't know of
Wrench [1840]
offer - Hudson [1968]
• knowing about offer and doing act is Excep
sufficient, cannot look into claimant's 1. cou
motive - Williams [1833] ser
COMMUNICATION OF will
ACCEPTANCE 2.offe
WHEN IS UNILATERAL and
, UNIT 3 - CONSIDERATION & INTENTION TO
Promisor - party making a promise e.g, seller
Promisee - party who the promise is made to e.g, buyer
CONSIDERATION MOVE FROM THE PROMISEE
•Idea comes from privity (those
•To be binding, a contract must be
involved in a contract)
supported by consideration
• If person B promised something but
• 'price for the promise' - something in return
didn't give anything in return, they
for something
might not be able to force the other
• Benefit or detriment - Curries v Misa [1875]
person to fulfill their promise
Consideration may be executory (a promise) or
executed (an act)
SUFFICIENT, NEED
NOT BE ADEQUATE
•the price of the promise does
Consideration also important when you not need to be economically
modify or terminate contracts equivalent of the promise.
• consideration needs to be something
of economic value, no matter how
1. Offer and acceptance
SUBJECT TO CONTRACT
2. Intention to create legal relationships This phrase indicates the initial bid or
3. Consideration agreement is not a final commitment and
both parties still need to work out the
1. AGREEMENT specifics before a legal contract is formed
Offer + acceptance = agreement
Offer - a willingness to contract on certain terms INVITATION TO TREAT
with the intention that it shall become binding once
accepted by the person whom it is addressed
Acceptance - an agreement to the terms of the
offer Display of goods for sale
• General rule - displaying goods (in shop win
to treat - Pharmaceutical v Boots [1953], F
2. INTENTIONS • Customer makes an offer to buy goods & th
• General rule not accepted when shop's inte
• Commercial agreements - strong from the display e.g, chocolate is yours if yo
presumption that parties intend the
agreement to have legal consequences Advertisment
• Social/domestic agreements - • Same general rule applies to advertisement
presumption that the parties did not intend • General rule can change if advert shows a c
the agreement to have legal consequences by those who perform the action mentioned
,UNIT 2 - ACCEPTANCE & AGENCY
ACCEPTANCE
Acceptance: the unqualified ✅
expression of assent to the terms
DOES OFFEREE NEED TO
KNOW OF OFFER TO ACCEPT
Offe
Offe
of the offer
•English law requires the offeree to
know of the offer in order to validly
accept it however, Gibbson v Proctor
SILE
• Cross offers don't give rise to
!
[1891] shows knowledge isn't always
contracts - Tinn v Hoffmann &
needed.
Co [1873]
• offeree should not be able to claim a
• An offer can only be accepted if it
contract if unaware of offer - Williams
has been made directly to the
v Carwardline [1833]
person accepting it - Hall v
Maritek Bahamas Ltd [2015]
Unilateral contract
• the principle of counter offer
• the offeree should be able to claim a
terminates original offer - Hyde v
contract even if they didn't know of
Wrench [1840]
offer - Hudson [1968]
• knowing about offer and doing act is Excep
sufficient, cannot look into claimant's 1. cou
motive - Williams [1833] ser
COMMUNICATION OF will
ACCEPTANCE 2.offe
WHEN IS UNILATERAL and
, UNIT 3 - CONSIDERATION & INTENTION TO
Promisor - party making a promise e.g, seller
Promisee - party who the promise is made to e.g, buyer
CONSIDERATION MOVE FROM THE PROMISEE
•Idea comes from privity (those
•To be binding, a contract must be
involved in a contract)
supported by consideration
• If person B promised something but
• 'price for the promise' - something in return
didn't give anything in return, they
for something
might not be able to force the other
• Benefit or detriment - Curries v Misa [1875]
person to fulfill their promise
Consideration may be executory (a promise) or
executed (an act)
SUFFICIENT, NEED
NOT BE ADEQUATE
•the price of the promise does
Consideration also important when you not need to be economically
modify or terminate contracts equivalent of the promise.
• consideration needs to be something
of economic value, no matter how
