business law lesson 4

What is a contract

A legally binding agreement between two or more parties

What are the elements of a valid contract

Offer, acceptance, consideration, intention to create legal relations and certainty

what is invitation to treat

An invitation for another party to make an offer or begin negotiations

Difference between offer and invitation to treat

An offer can become legally binding when accepted. Whereas invitation to treat invites someone to make a offer

What is a unilateral offer

A promise that can be accepted by performing a specific action such as returning a lost dog for a reward

What is a bilateral contract

A contract where both parties exchange promises, this is the one normally used

What did fisher vs bell establish

Display8ng goods in a shop window is generally a invitation to treat

Difference between a counter offer and a request for information

A counter offer changes the proposed terms, request seeks clarification without rejecting the order

What is revocation of an offer

the withdrawals of an offer must be communicated to the offeree before it becomes effective

What did byrne vs van tienhoven establish

Revocation must be communicated to the offeree before it becomes effective

What is acceptance in contract law

An unconditional agreement to the exact terms of an offer

What is the postal rule

Where it applies acceptance becomes legally effective when the acceptance letter is posted rather than when it is received

What is acceptance by conduct

Accepting an offer through actions rather than words eg beginning agreed services

What is the difference between void and voidable contracts

Void contract has no legal affect, while voidable remains valid unless the entitled party chooses to set it aside

What is battle of the forms

When two businesses exchange conflicting standard contract terms

What is the last shot rule

The party whose terms are last accepted will generally prevail

What is a simple contract

A contract that doesn’t require any special formalities and can be made verbally or in writing , less formal

What is a speciality contract

A contract made by deed, requiring special legal formalities

Difference between bilateral and unilateral

Bilateral contract involves exchanging promises, unilateral involves a promise accepted by performing an action