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Questions and Answers
What is a contract and what are the elements of its formation?
What is a contract and what are the elements of its formation?
A contract is an agreement between two or more parties that the law will enforce or provide a remedy for if breached. The elements of formation are: (1) two or more parties form objective agreement, (2) offer and acceptance, (3) sufficiently complete and certain, (4) intention to enter legal relations, and (5) consideration or deed.
What is an offer in a contract?
What is an offer in a contract?
An offer is an expression by one party (the offeror) to the other party (the offeree) of willingness to be bound by specified terms if the other party is prepared to accept those terms.
How do courts determine if there is an agreement in a contract?
How do courts determine if there is an agreement in a contract?
Courts can use the 'offer and acceptance analysis' or the 'global approach' to determine if there is an agreement in a contract. The offer and acceptance analysis looks at whether there is an offer that is accepted. The global approach looks at the totality of the evidence and makes a judgement call on the existence of an agreement.
