Contract: Contract Formation - SQE Revise

What are the requirements for a binding bilateral contract?

Offer and acceptance + Intention to create legal relations + Consideration

What are the elements to consider within offer and acceptance?

Clear and certain offer displaying an intention to be bound + Unequivocal acceptance

How does an offeror show an intention to be legally bound?

An offeror demonstrates an intention to be legally bound by making a clear offer that expresses a willingness to enter into a contract upon acceptance by the offeree. The kind of language that can be used is shown through comparing the cases of Gibson v Manchester City Council and Storer v Manchester City Council.

What are the differences between Unilateral and Bilateral contracts?

Bilateral contracts are where each party assumes an obligation to the other party by making a promise to do something. A Unilateral contract is where one party makes an offer or proposal in terms which call for an act to be performed by one or more other parties. There is no mutual promise and only actual performance of the required act will constitute acceptance.

What is an invitation to treat?

An invitation to treat is a first step in negotiations which may or may not lead to a firm offer by one of the parties. It cannot be accepted to form a binding contract.

What are the general categories of invitations to treat?

Advertisements; Display of goods for sale; Invitations to tender; Auction Sales

What is the general rule regarding advertisements established in Partridge v Crittenden?

Advertisements are generally considered invitations to treat, not offers, meaning they cannot be accepted to form a binding contract.