A contract is an agreement between two or more parties which in Scotland does not need to take a specific form, as a spoken agreement is still equally as enforceable as a written contract in certain circumstances such as in most social and domestic arrangements. A contract creates a legally binding bond between the parties involved. Contracts are made everyday sometimes without even realising it from buying a coffee to buying a house.
A contract is formed bilaterally when an offer has been unconditionally accepted by all parties involved leading to consensus in idem and is not to be confused with a promise which is a unilateral agreement requiring only one party to make the promise. In Bruce’s case some of the customer’s mentioned have not actually entered into a contract but rather have either received an offer or an invitation to treat. An offer unlike a contract is not legally enforceable but rather an invitation to enter into a contract and an invitation to treat is not an offer but rather an invitation to make an offer.
In the case of Carlill v Carbolic Smoke Ball Company (1893) The Carbolic Smoke Ball Company released an advertisement stating that a £100 reward would be paid to any person who contracted influenza, colds or any disease caused by taking cold, after having used the ball three times daily for two weeks according to the printed directions supplied with each ball. Despite the claims one of the companies customers Mrs Carlill caught the flu and sued the Carbolic Smoke Ball Company for the £100 they refused to pay her stating that their advert was in fact a legally binding contract which she had accepted by purchasing the product.
The above case...