Introduction to Contract Law by Jennifer Heusen

Overview

• Focus on contract formation, particularly principles of offer and invitation to treat.
• Agreement defined as a combination of offer and acceptance.

Definition of a Contract

• Layperson's view: Agreement between two or more persons.
• Legal perspective:
  • Professor Trityl: Contract is an agreement giving rise to obligations enforced by law.
  • Frederick Pollock: Contract is a promise or set of promises enforceable by law.
  • Sir William Anson: Law of contract determines when a promise is legally binding.

Essential Elements of a Valid Contract (English Law)

1. Agreement: Offer and acceptance.
2. Intention to Create Legal Relations.
3. Consideration.

Not All Agreements are Contracts

• Some agreements are unenforceable, such as social arrangements, illegal agreements, or those contrary to public policy.

Understanding Offers

• Definition: Proposal by the offeror to enter into a contract on specific terms, intending to be bound upon acceptance by the offeree.
• Offers can be made to individuals, groups, or the general public (e.g., rewards).
• Forms of offers: Written, spoken, or implied by conduct.

Distinguishing Offers from Negotiations

• Importance of determining whether statements are offers or part of ongoing negotiations.
• Key question: Were the parties expected to bargain further?

Case Studies

• Two contrasting cases related to Manchester City Council's policy of selling council houses:
  1. Stora vs. Manchester City Council (1974)
  2. Gibson vs. Manchester City Council (1979)
  • Both cases involve tenants wishing to buy their council houses amidst changing political control.

Conclusion

• Contracts are legally enforceable agreements characterized by the elements of agreement, intention to create legal relations, and consideration.
• Understanding the distinction between offers and invitations to treat is crucial in contract law.