Contract Law Flashcards
What is an ‘agreement?’
An agreement is an essential ingredient of a contract.
Traditionally, an agreement is comprised of an offer and a corresponding acceptance.
What is a contract?
A contract is a legally enforceable agreement.
a) There must be an agreement.
b) It must be a legally enforceable agreement.
What are the two types of agreements?
Bilateral and Unilateral.
What is a bilateral agreement?
It is the most common in practice and consists of a promise in exchange for a promise. Bilateral means that both parties are bound on the exchange of promises, although there has yet to be any performance of these promises.
EXAMPLE-
Alex offers/promises to sell his bicycle to Becky for £150 and Becky accepts - thereby promising to pay the £150.
What is a unilateral agreement?
It consists of a promise in exchange for an act. It follows that only one party is bound at the outset by a promise. The other’s acceptance is the performance of the requested act.
EXAMPLE-
It will involve an offer of a reward and may be phrased as an ‘if’ contract: I promise to pay £50 for anyone who finds and returns my lost dog.
