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Contract | Formation

Offer: Overview

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Offer: Overview

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  • contract formed / four elements: offer / acceptance / consideration (except deed) / contractual intention
  • creates legally binding agreement / party may be sued for breach of contract
  • offer: .. an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the person to whom it is addressed... (Professor Treitel)
  • expression: written / verbal / conduct
  • intention is determined objectively

Objective test

  • subjective approach impractical / require determining state of mind / relying on parties
  • courts use objective test / what reasonable man conclude (Smith v Hughes (1871))
  • objective approach creates certainty / necessary for commercial agreements
bits of law
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