The Formation Of A Contract Requires Offer And Acceptance

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The formation of a contract requires offer and acceptance in order to become legally binding. An offer is an expression of willingness to contract on specified terms made with the intention that it is to become legally binding as soon as it is accepted by the person to whom it is addressed. The advert above is a unilateral contract as “one party assumes an obligation under the contract”. Consideration is the act of performance in accordance with the terms of the offer, in this case acceptance would take place once the offeree starts the race. For example, the case of Carlill v Carbolic Smoke Ball Co [1892] where Mrs Carlill was entitled to the reward as the advert constituted an offer of a unilateral contract. She had accepted by …show more content…

The Borough of Mayfair cannot revoke the offer, as revocation can only be made at any time before acceptance. In addition, withdrawal of an offer has to be communicated between both parties and in this case withdrawal was not communicated. Nicole was informed of the withdrawal of the money after acceptance and performing the actions required were completed. Therefore, the contract cannot be terminated. A person cannot accept an offer of which they are unaware of because in order to create a binding contract, parties must reach an agreement. In this case Sylvie had no knowledge of the offer and she did not intend to run the race in order to receive any rewards. It can be said that the only intention she had was to accompany the rest of the competitors. The stages of a formation of a contract were not complete as offer was made to ‘anyone’, but Sylvie was not aware of the offer. This restricts the next stages of acceptance and consideration. Therefore, a legally binding contract was not made between the Borough of Mayfair and Sylvie, due to the missing stages of a formation of a contract. The Taylor v Laird [1856] case illustrates how a claim failed because one party did not have an offer from the other party to do a different job. This illustrates that a contract requires communication in order for it to become legally binding. Even though the conditions which were required were performed,

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