Aspects of Contract

P1.3 Analyse terms in contact with reference to their meaning

Introduction

Care must be taken when you we go into business or an agreement with someone. If that is the case we must be aware of the different terms that make the agreement legally binding in a court of law. Our thorough understanding of these terms would put us in a better position when going into a contract/agreement. The following terms below will help us in our understanding of a legally binding contract in a court of law.

Offer:

An offer is a promise “that, according to its terms, is contingent upon a particular act. ".An offer is the first of three steps in the traditional process of forming a valid contract: An offer must be reasonable under the circumstances for the recipient to believe that the communication is an offer. The more definite the communication, the more likely it is to constitute an offer. An offer with terms such as quantity, size, and price, time of sale and place of delivery is likely to be an offer. An offer may bind the offeror to the terms of the offer once acceptance is communicated by the offeree to the offeror. If an offeree rejects an offer, the offer is regarded terminated. An offeree can change the terms of an offer when such happens the original offer is considered void and a new offer will be created which may or not be accepted by the offeror. Some offers may be made irrevocable.

An irrevocable offer is one that cannot be revoked by the offeror and terminates only upon the passage of time or rejection by the recipient.

Acceptance

“Acceptance is an express act or implication by conduct that manifests assent to the terms of an offer

in a manner invited or required by the offer so that a binding contract is formed”. (Law.jrank.org”Acceptance –Types Of Acceptance”)

Acceptance is essential in the formation of a contract in order that each of the parties is aware that they are under a legal obligation and knows what the terms of the contract entail....