Steps Of A Legal Relations

1588 Words7 Pages
1.1 You normally have 5 basic elements: 1. Intention to create legal relations Normally both contracting parties should have the intentions to create a legally binding contract. Whenever a contract is signed in relations to business activities, it gives one side of the party the power to sue the other party if they don’t keep up with their contractual obligations. A contract can be rejected if the parties agree to not make it legally binding. You would normally see the words “subject to contract” or “without prejudice” which means that whatever is written in the contract is not legally binding. 2. Offer This is when a person presents something which is then followed by an unconditional acceptance from another person. For example, if a shop keeper was to display a sign saying two bottles of coco cola for £3, this would be considered as an offer. If time is not specified for the offer then it’s valid for a reasonable length of time. To avoid future disputes, the offeror must state a deadline for the offer. Silence cannot be accepted as an acceptance for the offer. For example, if the shop keeper doesn’t hear from the customer in number of days, he/she cannot accept this as an acceptance of the offer. “Invitation to treat” is seen as when a person invites another Person to make an offer but is not in itself an offer. 3. Acceptance For it to be considered as a contract, the other person needs to accept it. This is either done verbally or in writing. All contractual duties must
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