37Topic list Syllabus reference
1 Definition of contract B1(a)
2 Factors affecting the modern contract B1(a)
3 The essentials of a contract B1(a)
4 Form of a contract B1(a)
5 Offer B1(b)
6 Termination of offer B1(c)
7 Acceptance B1(d)
8 Communication of acceptance B1(d)
9 Collateral contracts B1(b), B1(d)Formation of
contract I
Introduction
We begin our study of the Law of Obligations by considering Contract Law.
Individuals and businesses form contracts all the time. Despite what many
people believe, contracts do not all need to be written and signed documents,
indeed many valid contracts involve no written or spoken communication at all
- for example where a person buys something from a shop.
This chapter describes what a contract is, the essential elements that make
up a contract and the various forms contracts may take.
It continues by analysing the first requirement for a valid contract – agreement,
which consists of an offer and acceptance of the offer.
You must be able to distinguish offers from invitations to treat and to explain
what the consequences of acceptance are. The rules concerning when offers
can be terminated and how acceptance should be communicated are vital
knowledge since exam questions may require you to use them to determine
whether or not a valid contract exits.