* The 6 essential elements to form a contract is offer, acceptance, consideration, intention to create legal bound, capacity to contract and legality of promise. * An acceptance of an offer will create an agreement.
* However, not all agreements are recognized as contracts. * Agreements with no intention to create legal obligations will not create a contract. * In order to create blinding agreement acceptance must be final and unconditional.
* Acceptance is a clear and undoubted assent to the offer and all of its terms. * The law regard as acceptance when the offeree accepted the offeror’s offer. * Not acceptance is when one party disputes whether the other accepted the offer. * Acceptance is important because acceptance will lead to agreement to be formed and contract will comes into existence.
* 4 rule in acceptance which are, acceptance must be clear and undoubted, offeror requirements must be met, acceptance in reliance upon the offer and acceptance must be communicated. * Mirror image rule is the rule of contracts that prohibits an offeree from changing the terms of that offer * The alteration in terms of the offer by the acceptance voided the agreement and there will no contract exists. * The rationale of the mirror image rule is to ensure the acceptance is final and absolutely unconditional so that blinding contract can be done.
* Conditional or qualified acceptance is as long as the conditions are not satisfied, an acceptance give subject to a condition will not operate * A conditional acceptance is not a blinding agreement due to acceptance must be final and absolutely unconditional. * This type of acceptance operates as a counter offer, therefore this will destroy the first offer. * The purpose of inserting “subject to contract” means parties does not want to be bound by the contract until it become the written contract. * This...
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