Chpt 2

• Agreement


  Offer + Acceptance
• Contract


  Agreement + Intention to Create Legal Relations
• Types of Contract


  • Simple Contract
  • Specialty Contract
• Basic features of a contract

  • Offer
  • Acceptance
  • Consideration
  • Intention to Create Legal Relations
• Agreement is not always a contract, even though a contract will always include an agreement
• A legally binding agreement is known as a contract
• Offer


  A clear indication of willingness by the offeror to enter into a legally binding contract, as soon as the offeree has accepted all the terms of the offer
• Invitation to treat


  An invitation to start negotiations or make an offer, not an offer itself
• Valid Acceptance

  • Final and unconditional
  • the acceptance must be made orally, in writing or by any other positive act
• Specialty/Deed Contract


  Rare, requires to be in writing & must be "signed, sealed and delivered" in a very specific format
• Simple Contract


  Common, may be oral, written, or partly oral and partly written, or even implied from conduct
• Intention to create legal relations


  The parties must intend to enter into a legally binding relationship with each other at the same time when they reach an agreement
• Categories of agreements (simple contract)

  • Domestic and social agreements -> do not want to create legal intentions
  • Business or commercial agreements -> wants to create legal intentions
• A one-way promise, such as a gift, is not legally enforceable as a simple contract
• The purpose of giving consideration is to bind the promisor to their promise
• An offer requires a clear indication of willingness by the offeror to enter into a legally binding contract

  invitation to treat <> willingness to enter a legally binding contract
• 4 legal requirements for a simple contract:

  1. Offer
  2. Acceptance
  3. Consideration
  4. Intention to create legal relations