Introduction

This guide has been created to give a brief explanation of the principles regarding contract
law. From how contract is developed, the content being legal and fair for both parties, things
that make contact null or void and the end process of contract law. It starts with the overall
division into three parts which will be discussed in the report:
1. Formation of contract: this encompasses concepts of offer, acceptance, considerations,
contractual intention and form
2. Contents of contract: This involves express and implied terms
3. The end of contract: Expiration, Termination, Vitiation and Frustration

Formation of contract
The formation of contracts begins with the definition of contract stating that it is agreement
giving rise to obligations which are reinforced or recognized by law. Meaning that contract is
an agreement between two parties both performing the legal duties for which they are
responsible under the supervision of the law. In contract both parties must exchange of
something value. Additionally, for the contact law to be created three conditions must be set.
These are:
1. Agreement: that is the consent between two parties must be mutual under law.
2. Contractual intention: defined as intention to enter a legal binding contract for the two
parties
3. Consideration: In the contract there is a bargain or exchange of promises between the
promisor and the promise. One party will get benefit and the other will face detriment.
The essential criteria for the contract to be implemented is that parties must have an
agreement. When one party makes an offer and the other party accepts it then it falls into the
responsibility of the court to perform an objective test. In the objective test a reasonable
person is selected to monitor the behavior and acts of the parties objectively to make the
agreement exist otherwise it is not possible.

offer
In the formation of contract there are certain steps that are taken to validate the contract. the
first is offer. Offer is the expression of willingly accept the contract under specified terms in
which once offered to the intended party, they must be bind by the offer stated in the contract.
Here an objective manifestation is considered where the third party reviews the act of conduct
of the person accepted the offer as to influence the third party to obey the contract even if the
intention is to not do so. The practical application of this information was seen in a scenario
where university made offer to an intending student a place due to clerical error.
An offer can be provided through multiple mediums such as words and conduct and to whom
this offer can be addressed can be a single individual, a group of persons (organization) and
the whole world. Offer expressed to the world can be in the form of any advertisement.
An offer must be different from an invitation or treat. In contract law invitation to treat is an
action inviting other parties to make an offer to form a contract. This distinction is very
important because accepting an offer creates a binding in contract while accepting invitation
to treat is actually making an offer. Common examples of invitation to treat are
advertisements or good displayed in shelf of a self-service store. Similarly, there was a case
involving the offer and invitation to treat. that is the case of Carlill v Carbolic Smoke Ball
Company [1893]. In this case the carbolic smoking ball company advertised a new drug
known as carbolic smoke ball that would cure flu, if it would not then buyers would receive
100 pounds. When the people using it started dying the company claimed that this
advertisement was mainly an invitation to treat rather than an investment. But the court of
appeal stated that this advertisement was more an offer than invitation to treat. Showing
consideration and the conditions implied acceptance in the ad along with the company
depositing 1000 £ in the bank showing intention to be legally bound. in the end the company
lost the case.
After offer comes acceptance. Acceptance is the final and unqualified expression of assent to
the terms of the offer. It means that when the person to whom the offer is made gives his
consent with intention of all things being legal. The objective manifestation is also applied
for the person accepting the offer with the intention of being bound to the terms of the
agreement. Only if the terms of the agreement are matched with the offer only then the
agreement can be accepted. Acceptance of offer can be achieved through conduct (i.e.
accepting an offer on the basis of his or her actions). Such as an offer to buy goods can be
accepted by sending them to the offeror.

Acceptance
In the acceptance and offer part of the contract law communication in cases of long distance
has been a serious issue. Acceptance has no legal effects until it has not been communicated
to the offeror. For this issue a solution was created that was the post rule acceptance. the post
rule acceptance will take effect when the letter of acceptance is posted even if the letter is
destroyed, lost or delayed. The post rule acceptance will only not take effect until it is stated
which medium will be used to communicated in the terms of an agreement. Post rule
acceptance is also applicable in IT technology such e-mails. Silence of the offeree cannot be
taken as acceptance of the offer. Another reason in fail in communication to take place is the
counter -offer. when the terms of the offer are changed in response to the original offer made
is known as counter -offer. In this case it falls on the original offer to either accept or reject.
When the offeror makes offer to trade on standard terms but the offeree intends to accept the
offer on its own terms this represents counter offer. When the counter offer is made then the
original offer is automatically rejected. It can only be restored or accepted if both parties
agree.
If the offer wishes to revoke an offer it must be done before acceptance. Revocation is known
as the withdraw of an offer. For the revoke to be effective it must be communicated to the
offeree directly or indirectly that is through third party. If it is not communicated then revoke
will not take place.
When the acceptance takes place an, then the agreement is formed. But still it has not
completely covered the legal obligations such as amount of payment, time, delivery method,
place, quality of goods etc.