Introduction to offer and acceptance

Question 1

What three elements must be present for there to be a binding contract?

Answer 1

1. Offer and acceptance
2. Intention to create legal relations
3. Considerations

Question 2

Elaborate on element number 1.

Answer 2

For a contract to exist, one party (the offeror) needs to make a clear and certain offer displaying an intention to be bound and the other party (the offeree) needs to communicate an unequivocal acceptance.

Offeror – the person making the offer
Offeree - the person to whom the offer is made

Question 3

How does the court approach whether an agreement exists?

Answer 3

• The law applies an objective test:
  what a reasonable person would say was the intention of the parties, having regard to all the circumstances
• The court is not concerned with the inward mental intent of the parties.
• Storer v Manchester City Council [1974] 1 WLR 1403, Lord Denning: ‘In contracts you do not look into the actual intent in a man’s mind. You look at what he said and did.’