Contract formation - created from Mind Map

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Acceptance

Intention

Offer

Consideration

Conditional acceptance: neither counter offer nor acceptance, subject to contract i.e. pending other activities/assurance

Final and unqualified expression of interest to agree to an offer and enter into a contract

Unequivocal - no more terms to negotiate

Must mirror the offer being made

Communicated effectively - offer deemed accepted when intention to proceed has been communicated - mailbox rule

If too vague, agreement cannot be enforced. Conflicts can be resolved - severability (remainder of contract remains in force), contract mechanisms

Incomplete agreement: Contract should cover key areas & terms otherwise there should be a clause stating that partis will look to complete details as soon as possible = intention to do business

Capacity

Willingness to enter into a contract

Intention to be bound by contract

Invitation to treat: make offers, no commitment from buyer, buyer is willing to negotiate e.g. display of goods, adverts, tenders, online transactions

Unilateral contract: offer can only be accepted by performance e.g. bid in auction w/o reserve

Counter offer changes at least one KEY element of the offer. ADDS terms to the original offer

Medium of exchange between parties which represents the value of the good/service e.g. money

An exchange of promises can amount to consideration

Does not need to be adequate e.g. peppercorn contract. Courts don't get involved in resolving bad bargains

Must have some economic value i.e. tradeable in some fashion

Cannot be given against performance of legal obligation nor can it be given twice unless obligation changes

Only consideration given/promised for a specific activity can be enforced