Contract Formation

Overview

• Presenter: Ben from Lovicott Law
• Series about elements of a valid contract
• Contracts can be oral or written

Elements of a Contract

1. Offer

   • Made by the offeror
   • Intention to be legally bound by the terms
   • Accepted by the offeree

2. Acceptance

   • Must be unqualified and unconditional
   • Acceptance of all terms in the offer
   • Changing terms or making a counter-offer is not acceptance

3. Intention to Create Legal Relations

   • Both parties must intend to be legally bound
   • Inquiry or request for information does not constitute offer and acceptance
   • Example: Asking for the best price is not an offer

4. Consideration

   • Something of value exchanged between the parties
   • Example: Payment for a car and the car itself

Practical Advice

• Email negotiations can accidentally lead to contract formation
• Use "subject to contract" in emails to avoid accidental acceptance

Conclusion

• More detailed videos on the elements of contract formation to come