Agreement (Offer/Acceptance) Main Terms Flashcards
What are the 3 elements of a contract?
The three elements of a contract are agreement (which manifests itself in offer and acceptance), contractual intention and consideration.
What forms an agreement?
An offer and acceptance.
What is an offer?
A definite promise to be bound by specified terms.
An expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.
What is an invitation to treat?
An invitation to negotiate or asking someone if they wish to make an offer.
What is an acceptance?
A final and unqualified expression of assent to the terms of an offer.
What is consideration?
Consideration can be defined as the price the claimant pays or promises to pay for the defendant’s promise.
Consideration need not be adequate (i.e not have to adequately reflect the value of the promise in return for which it is given). Consideration must be sufficient (it must have some value). (Chappell v Nestle).
What is Promissory Estoppel?
Where a party to a contract has, by words or conduct, made a promise to the other to forgo a legal right,
then once the other party has acted on the promise
he will have a good defence to any claim brought by the promisor which is inconsistent with the promise.
The defence will be allowed in so far as it is equitable.
