Elements Of A Contract?

1200 WordsApr 5, 20175 Pages
Elements of a contract 1. Offer 2. Acceptance (Initiation of contract) 3. Consideration 4. Intention 5. Legal object 6. Legal capacity 7. Consent 8. Formalities Question 1 (a) What is the difference between an offer and an invitation to treat? Invitation to treat : A legal expression whereby one of the parties wishes to invite the other(s) for an offer. Such party does not have the intention of being legally bound just yet but merely wishes to discuss the offer and its grounds. An offer on the other hand is a statement of terms where the party (at this stage would be referred to as the offeror) has the intention of being legally bound to the terms of whatever agreement they have going on. Pharmaceutical v Boots…show more content…
Options contracts are often used in securities, commodities, and real estate transactions Goldsborough v Quinn (e) What is the postal acceptance rule and when does it apply? The Adams v Lindsell postal rule only applies when it is reasonable to use the post as a means of communicating acceptance. So, an offer made in a letter sent by post could be accepted by post. Adams v Lindsell (1818) 106 ER 250 An 1892 British case (Henthorn v Fraser) summarized it as follows: "Where the circumstances are such that it must have been within the contemplation of the parties that, according to the ordinary usages of mankind, the post might be used as a means of communicating the acceptance of an offer, the acceptance is complete as soon as it is posted." Empirnall Holdings v Machon Paull Partners https://www.australiancontractlaw.com/cases/empirnall.html Electronic Communications Act [2.270] (f) Advertisements are always regarded as invitations to treat. Is that true? Usually but not always. An Invitation to treat will be anything that is displayed to a large number of people with an undefined way of choosing who can accept. An offer will be directed at a specific person with specified terms. So if an item is displayed saying it will be sold to the highest bidder or to the first to accept the labeled price, it will be considered an offer. If an item is simply displayed in a store window for example, it will not

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