contracts

Question 1

what is an offer

Answer 1

offe
all terms must be set out clearly, completely and without any conditions
the offer must be communicated to the other person

Question 2

how can an offer be terminated

Answer 2

a person can withdraw the offer at anytime before the other party accepts it
or if the deadline which is set passes

Question 3

what is an invitation to treat

Answer 3

eg price tag/advertisement in a shop is not an offer it is an invitation to treat
it indicates that the shop is open to an offer and the customer should make the offer

Question 4

what is acceptance

Answer 4

the person agrees precisely to all terms of the offer without conditions
one can accept by writing, speaking

Question 5

what s consideration

Answer 5

is the payment one person gives eg money
it must be real and valuable
cannot be free

Question 6

intention to contract

Answer 6

most parties be aware that it is a legally binding contract
they must fully understand that if they break the contract they can end up in court
eg contracts cannot be between family member for non business transactions are not legal

Question 7

capacity to contract

Answer 7

must have a legal right to make a legally binding contract