Tender-Invitation to Treat-Contract Law
Contract Law
Presented by Kerra Bazzey
Contract Law
Formation of a Contract
Terms of a Contract
Discharge of a Contract
Remedies for Breach of a Contract
Formation of a Valid and
Enforceable Contract
Offer
Acceptance
Consideration
Intention to Create Legal Relations
Privity of Contract
Capacity to Contract
Must not be illegal or contrary to public policy
Formation of a Contract
A contract is an agreement which creates legal rights and obligations between the parties to it. It is formed when the parties reach agreement on the essential features of the bargain.
Offer – a statement made by a party which manifests an intention to be bound on precise terms.
The person who makes an offer is known as the offeror or the promisor.
The person to whom the promise is made is the offeree or the promisee. Bilateral contracts - most common form of contract – here there is an exchange of promises.
Unilateral contracts - commonly known as an ‘if’ contract - here the promise is one-sided as the offeror alone makes a promise.
Elements of an Offer
(i)
An offer can be made to an individual, a group of persons or to the public at large. An offer to the public at large can only be made where the contract is a unilateral one.
(ii)
An offer should not be vague. Where on the face of it an offer appears to be vague, but the parties have had prior dealings or are operating in a particular trade, then the courts will imply certain terms and conditions to conclude that a statement that initially appeared vague is in fact sufficiently certain.
(iii)
A response in request to clarification on price or a request for more information is not an offer.
Elements of an Offer
Consider the following exchange:
- H: “Will you sell us your farm called Bumper Hall Pen? Fax me the lowest price”?
-F: “Lowest price for Bumper Hall Pen is $1,200,000.00”.
-H: “We agree to buy Bumper Hall Pen for $1,200,000.00 asked by you”. - F never
Presented by Kerra Bazzey
Contract Law
Formation of a Contract
Terms of a Contract
Discharge of a Contract
Remedies for Breach of a Contract
Formation of a Valid and
Enforceable Contract
Offer
Acceptance
Consideration
Intention to Create Legal Relations
Privity of Contract
Capacity to Contract
Must not be illegal or contrary to public policy
Formation of a Contract
A contract is an agreement which creates legal rights and obligations between the parties to it. It is formed when the parties reach agreement on the essential features of the bargain.
Offer – a statement made by a party which manifests an intention to be bound on precise terms.
The person who makes an offer is known as the offeror or the promisor.
The person to whom the promise is made is the offeree or the promisee. Bilateral contracts - most common form of contract – here there is an exchange of promises.
Unilateral contracts - commonly known as an ‘if’ contract - here the promise is one-sided as the offeror alone makes a promise.
Elements of an Offer
(i)
An offer can be made to an individual, a group of persons or to the public at large. An offer to the public at large can only be made where the contract is a unilateral one.
(ii)
An offer should not be vague. Where on the face of it an offer appears to be vague, but the parties have had prior dealings or are operating in a particular trade, then the courts will imply certain terms and conditions to conclude that a statement that initially appeared vague is in fact sufficiently certain.
(iii)
A response in request to clarification on price or a request for more information is not an offer.
Elements of an Offer
Consider the following exchange:
- H: “Will you sell us your farm called Bumper Hall Pen? Fax me the lowest price”?
-F: “Lowest price for Bumper Hall Pen is $1,200,000.00”.
-H: “We agree to buy Bumper Hall Pen for $1,200,000.00 asked by you”. - F never