With reference to decided cases explain the various elements required to form

a legally binding contract.

How do I start?

Set Text Book – Law for Business Students by Alix Adams 8th Edition

Research:

Index

Contract law

Offer and Acceptance

(Formation of a contract)

Plan your answer – 2000 words

Basic introduction:

In the word of business, people are entering into contracts all of the time. A
contract is an agreement that is enforceable at law, i.e. if one party does not
do what they said they would do, the other party can pursue them through the
courts. Contracts are fundamental to business, as they are needed to form
binding agreements with employee, customers, suppliers etc. In this essay, it
will be necessary to focus on the necessary constituents in a valid and binding
agreement.

For a contract to be valid, it must contain an offer which is then accepted by

the offeree. Each party will acquire consideration under the agreement (a
benefit) and both parties must have intended to have created a legal
agreement. Each of this components will be looked at in turn.

An offer is…………………………….

(definition)
(distinguished from…………………..puff,

(distinguished from……..invitations to treat)

Fisher v Bell, Grainger v Gough, Patridge v Crittenden,

How long an offer will remain open for……………

Revocation of an offer

Example:

An offer must be distinguished from several things including an invitation to

treat. An invitation to treat is an invitation for others to make an offer. It is
important to understand the distinction because a contract cannot be formed
for somebody merely making an invitation to treat. This matter has been
explored in many cases including Fisher v Bell which looked at the status of
goods ‘offered’ in shops windows. The courts held that they were only
invitations to treat. Likewise, in Grainger v Gough the court held that circulars
or leaflets that were distributed by a business only amounted to invitations to
treat –and could not be construed as offers.

2. Acceptance

Definition –

Unconditional agreement to all the terms

Stevenson v MacClean

Hyde v Wrench

Silence will not constitute acceptance (Articles and Journals)

Consensus ad idem…………..(meeting of the minds)

Entores v Miles Far East Corp - Lord Denning obiter dicter……………

Acceptance by conduct………….Carlil v Carbolic Smoke Ball Co.

Postal rule – postal acceptance.

3. Consideration

Definition – the idea that each party under a contract acquires a benefit
Types of consideration – executed, executory, past etc

Consideration must be sufficient but it need not be adequate

Chappell v Nestle (Lord Somerville – peppercorn speech)

4. Intention to create legal relations……………

Business approach

Domestic approach

“officious bystander test”