Law Block 2 Chapter 5 Samenvatni
Binding contracts
Simple/parol contracts – a contract that does not need to be in the form of a deed to valid
Essentals of a bindini contract
1. Offer – a full clear statement if terms on which the maker (oofferor) is prepared to de business
with the person(os) to whom the offer (oofferee) is communicated
2. Acceptance – unconditonal assent to the terms of an offer
3. Consideraton – money/ ioods/ services/ land representni the bariain elements of the
contract
4. Intenton to create leial relatons – the partes’ intenton to make their aireement leially
bindini
Standard form contract – stpulates terms and conditons with no room for neiotaton by the other
party
Offeror – the makers of the offer
Offeree – the recipient of the offer
Bilateral offer – a contractual promise of performance of an act in return for the other party’s
promise of performance
Unilateral offer – an offer may be capable of clarifcaton by reference to:
1. The partes’ previous dealini and the nature if the relevant trade
2. Statutory implied terms
3. Arbitraton clauses
Invitaton to treat – encouraiement to make an offer, usually by advertsement of some kind
Tender – a compettve offer (obid) to provide ioods or services (ooverbieden)
Counter-offer – an offer made in response to an existni offer
Opton – a promise to allow an offeree tme to consider doini business in the terms of a pre-existni
offer
Acceptance
The offeree, by acceptance, airees to be bound by all terms if the offer. To be leially bindini such
acceptance must fulfl three rules:
1. It must a ‘mirror-imaie’ of the offer
2. It must be unconditonal
3. Is must be communicated to the offeror
Subject to contract – a provisional acceptance, prior to a contract beini drawn up
Reasonable expectatons of hones men – the objectve standard by which the court decides whether
a party’s conduct evidence sufcient intenton to be contractually bound
Post-rule – the default rule iovernini acceptance by most which is that the acceptance is bindini
from the moment of postni
Binding contracts
Simple/parol contracts – a contract that does not need to be in the form of a deed to valid
Essentals of a bindini contract
1. Offer – a full clear statement if terms on which the maker (oofferor) is prepared to de business
with the person(os) to whom the offer (oofferee) is communicated
2. Acceptance – unconditonal assent to the terms of an offer
3. Consideraton – money/ ioods/ services/ land representni the bariain elements of the
contract
4. Intenton to create leial relatons – the partes’ intenton to make their aireement leially
bindini
Standard form contract – stpulates terms and conditons with no room for neiotaton by the other
party
Offeror – the makers of the offer
Offeree – the recipient of the offer
Bilateral offer – a contractual promise of performance of an act in return for the other party’s
promise of performance
Unilateral offer – an offer may be capable of clarifcaton by reference to:
1. The partes’ previous dealini and the nature if the relevant trade
2. Statutory implied terms
3. Arbitraton clauses
Invitaton to treat – encouraiement to make an offer, usually by advertsement of some kind
Tender – a compettve offer (obid) to provide ioods or services (ooverbieden)
Counter-offer – an offer made in response to an existni offer
Opton – a promise to allow an offeree tme to consider doini business in the terms of a pre-existni
offer
Acceptance
The offeree, by acceptance, airees to be bound by all terms if the offer. To be leially bindini such
acceptance must fulfl three rules:
1. It must a ‘mirror-imaie’ of the offer
2. It must be unconditonal
3. Is must be communicated to the offeror
Subject to contract – a provisional acceptance, prior to a contract beini drawn up
Reasonable expectatons of hones men – the objectve standard by which the court decides whether
a party’s conduct evidence sufcient intenton to be contractually bound
Post-rule – the default rule iovernini acceptance by most which is that the acceptance is bindini
from the moment of postni
