Contract Law

Topics: Contract, Contract law, Common law Pages: 5 (1329 words) Published: January 18, 2001
England's contract law is consisted of several laws and they can not be written or at least explained in a student's assignment, which is consisted of 1000 words. Despite that I will try to outline the main points of the contact law and explain briefly what each means. On the second point I will explain the little difference between the English contact law with the equivalent contract law of my home country which is Cyprus. I wrote "little differences " because, Cyprus is following the English system concerning laws. The English contract

Offer and Acceptance
General principles
There are three basic essentials to the creation of contract which will be recognised and enforced by the courts. These are: contractual intention, agreement and consideration. The Definition of Offer.

This is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the offeror as soon as the person to whom it is addressed accepts it. An offer can be made to one person or a group of persons or to the world at large. The offeror is bound to fulfil the terms of his offer once it is accepted. The offer may be made in writing, by words or conduct. Unilateral - some offers are purely one sided, made without the offeror's having any idea whether they will ever be taken up and accepted, and thereby be transformed into a contract. For example when an advertisement where a person is rewarding another one if he finds his pet (which was lost). In this case the person who is making such an offer is not sure whether this offer will be ever accepted. Bilateral - The majority of offers are Bilateral. While it is not always true, most people make an offer to one named offeree or a small group of parties. Most contracts are made with both parties present on a face-to-face basis. Invitation to treat

An invitation to treat made by one party to another is not an offer. An invitation to treat is made at a preliminary stage in the making of an agreement, where one party seeks to ascertain whether the other would be willing to enter into a contract and, if so, upon what terms. To distinguish between an offer and an invitation to treat it is necessary to look at the intention of the person making it. It is not an offer unless it was made with the intention that it should be binding as soon as the person to whom it was addressed communicates hi assent. Some examples of invitations to treat are:

Display of goods in shops
 Advertisement (which can be of bilateral transaction or unilateral contract)  Ticket cases
 Auction sales
 Tenders
 Subject to contract

Duration and termination of offer
An offer continues in existence, capable of acceptance until it is brought to an end. It occurs in six ways

 Revocation
 Rejection by the offeree
 Lapse of time
 Occurrence of a terminating conditions
 Death
 Insanity, incapacity, insolvency or impossibility

An acceptance is a final and unqualified acceptance of the terms of an offer. Unless it can be shown that there was such an acceptance, then there is no contract. Where the offeror sets out his offer and request an answer of yes or no from the offeree, it is not difficult to determine whether or not there has been an acceptance. In addition to being a firm and unqualified acceptance of all the terms of the offer, the fact of acceptance must normally be communicated to the offeror before there is concluded contract. The rules as to communication are following:

 Acceptance by conduct
 Counter-offers
 Request for information
 Clarification of implied terms
 The "battle of forms"
 Acceptance of tenders
 Conditional acceptance
 Acceptance in ignorance of an offer
 Motive for the acceptance
 Cross-offers

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