W3Contract law - offer & acceptance

• What are the three requirements for a legally binding agreement?

  An offer, acceptance, and consideration
• What is the legal significance of an offer?

  An offer is a clear statement of terms
• How must acceptance be communicated to form a contract?

  Acceptance must be unconditional and communicated
• What case established that vague statements are not part of a contract?

  Guthing v Lynn (1908)
• What is the postal rule in contract law?

  Acceptance is effective when posted
• Which contracts must be in writing?

  Selling land and obtaining credit
• What are the differences between bilateral and unilateral offers?

  • Bilateral offer: Exchange of promises between parties
  • Unilateral offer: Compensation for performing a task
  • Example of unilateral: Carlill v Carbolic Smoke Ball (1893)
• What are statutory implied terms in contracts?

  Terms automatically included by law
• What is the role of arbitration clauses in contracts?

  They allow disputes to be resolved through arbitration
• What is an invitation to treat?

  An indication to negotiate, not an offer
• How does an offer differ from negotiation?

  An offer is a clear proposal to form a contract
• What are the ways an offer can be terminated?

  Death, rejection, counter-offers, lapse, revocation
• What must be true for an acceptance to be valid?

  It must mirror the offer and be unconditional
• What happens if acceptance is not communicated in the specified way?

  No contract is formed if not specified
• What are the key elements of a legally binding contract?

  1. Offer and acceptance
  2. Intention to create a legal relationship
  3. Consideration (exchange of value)
  4. Capacity to contract
  5. Legality of purpose