Introduction to Contract Law - Week 2: Offer

Key Elements of Contracts

• Agreement: Divided into offer and acceptance.
  • Week 2: Focus on Offer
  • Week 3: Focus on Acceptance
• Consideration: Have parties struck a bargain?
• Intention: Do parties intend for the agreement to have legal consequences?
  • Example: Casual agreements (e.g., meeting someone or favors) often lack legal intent.
• Certainty: Are the parties' rights and responsibilities clearly defined?

Importance of Contracts

• Understanding the construction of a contract is vital for determining available outcomes if a contract exists.
• Distinguishing between legally binding agreements and informal promises is crucial.

Types of Contracts

• Bilateral Contracts: Obligations on both parties.
• Unilateral Contracts: Only one promise is made by one party (e.g., a reward for a lost pet).
  • Example: Party A offers $100 if Party B finds A's lost puppy.
  • The contract is formed when B performs the stipulated task.
  • Offeror: Party making the offer
  • Offeree: Party to whom the offer is made

Formation and Withdrawal of Offers

• Offers can be made to individuals, groups, or the public at large.
• Offers can be withdrawn before acceptance (e.g., if the lost pet is found and signs are taken down).

Agreement and Offer

• The traditional doctrine of agreement relies on offer by one party and acceptance by another.
• Objective Test: Courts use this to determine if an agreement is reached, based on a reasonable person's assessment.
  • Secret mental reservations are ignored.
• Case Law: Precedent set by cases, such as Carlin v. Carbolic, is vital for understanding legal principles.

Nature of Offer

• An offer indicates willingness to enter a contract on certain terms.
• It creates in the offeree a power to create a contract by accepting the offer, unless withdrawn or terminated.
• Must provide all necessary information and be clear, capable of acceptance without variation.

Characteristics of an Offer

• Firm promise with definite terms.
• Made to specific individuals, groups, or the public.
• Invites exchange, indicating legal intent.

Visual Aids

• Flowcharts and visuals can help in understanding contract elements and agreement formation.
• Recommended to use legal dictionaries for unfamiliar terms.

These notes cover the foundational elements of contract law, focusing primarily on the concept of offer, its nature, and its role in forming legally binding agreements.