The Legal Issue Of An Agreement For A Contract That Have Legal Obligation Essay

The other element of agreement is acceptance. An acceptance must be made on the same term as the offer and can only made by the person who the offer is addressed to. Meanwhile, an acceptance must be made while the offer is still in existence and it must be made in an acceptable form which means that the acceptance must be made in the same manner of the offer was offered. Lastly, the acceptance is effective when communicated.

An advertisement involving a transaction in goods is an offer when it invites particular action, and when it is clear, definite, and explicit and leaves nothing open for negotiation.

However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,

An offer allows the person or business to whom the offer is made to, to reasonably expect that the offering party is willing to be bound by the offer based on the terms proposed thus these terms of an offer must be define as well as certain.

A contract comes into existence with the initiation of an offer made by one party, which in turn should be ‘accepted’ by the other party. The element of offer and acceptance thus initiate the legal process of the formation of a valid and binding contract. The significance of acceptance with respect to the contract laws stems from the fact that the proposed offer must be accepted by the promisee and forthwith be communicated to the promisor. Together offer and acceptance create a promise which can

Specifically, a negotiable instrument should be written, signed by the maker, include an definite promise.

The offeree is the only party with legal power to accept an offer, thus forming a contract. In addition, for the contract to be considered accepted, the offeree must accept all the terms of the offer unequivocally. This is called “the mirror image rule”. For example, if the offeree stated “I will purchase your home, but I wish the drive way was repaved”. The offeree accepted the terms, making this an accepted contract. An example of non-acceptance is if the offeree stated “I will purchase your home, if you pave the driveway”, This would be a

Agreement: There must be an offer coming from the offeror and an acceptance of this offer by the offeree. Mutual consent is required.

for it to qualify as a proper contract in the eyes of the law: offer

In order for a contract to be formed, there are various requirements. These are offer, acceptance, consideration, and the intention to create legal relations. A contract may also be terminated.

An offer is an expression of willingness by one party to contract on certain terms with another party with the understanding that the contract will become binding when accepted by the person to whom it is offered. An offer may be made in different ways, such as in a letter, an email, or even your behavior, so long as it conveys the basis on which the offering party is willing to contract. An offer should consist of: (1) a statement of present intent by the offering party to enter into a contract; (2) a specific proposal that is certain in its terms; and (3) a communication that identifies the person to whom the offer is made. If any of these elements are not present, an offer has not been made. (Walker, C. B., 2012)

restitution interest – object is the prevention of unjust enrichment by the defaulting promisor at the expense of the promisee

For acceptance in a valid contract it is necessary to state the terms in a clear and direct matter. After both parties are in agreement to the terms of the contract it is clearly understood among the parties that the contract is confirmed with full acceptance of the offer. The acceptance can be confirmed in various ways in order for there to be no uncertainty or room for doubt (U.S.Legal, 2011). A few ways an offer is accepted is verbally face to face, through electronic means such as a text, email or letter for example. However the manner of acceptance should be determined by the person making the offer or person making the contract. The terms of acceptance must be given by the offerer to set the terms of receipt. There is risk involved in initiating the offer. It is necessary to evaluate the risk required to make a decision in contract negotiations.

This has the effect of destroying the original offer so that it is no longer open for the offeree to accept.

Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.