Formation: Agreement

Question 1

give a more formal definition of a contract

Answer 1

a contract is an agreement, between two parties having the capacity to make it, in the form demanded by law, to perform on one side or both acts which are not trifling, indeterminate, impossible or illegal creating an obligation enforceable in a court of law.

Question 2

what is the legal template for a contract?

Answer 2

‘consensus in idem’ literally meaning agreement on the same thing- often referred to as a meeting of minds

Question 3

as far as the law is concerned when are all contracts created?

Answer 3

when an offer is accepted by an unqualified acceptance a binding contract is created

Question 4

what is the preliminary step that precedes an offer known as?

Answer 4

“invitation to treat”

Question 5

what happens if parties do not agree on the same thing?

Answer 5

no contract

Question 6

what is the basic formula of a contract?

Answer 6

Offer + Acceptance= Agreement (consensus in idem)= Binding contract

Question 7

what is the main criticism of the formulaic expression of analysing a contract?

Answer 7

The meeting of the minds expression. We cannot know what is going on in peoples head.

Question 8

how does the law over come the criticism of the meeting of the minds expression?

Answer 8

the law takes an objective approach. The law looks at words and deeds rather than mental intention.

Question 9

can an offer made containing a mistaken term still bind?

Answer 9

yes

Case authority: Moran v University College Salford (1994)