OFFER
AND ACCEPTANCE
A
contract requires the agreement of the parties. Evidence of that
agreement is an offer by one party and acceptance of
that offer by the other. The offeror must be willing to trade
otherwise it is an
invitation to treat. The
offeree must know of the offer and it must be fully accepted. For
example, if the offeree responds with a request for further
information, or a counter offer, then the offer has not been
accepted. An offer can be accepted by conduct or by post according to
the postal rule. The offer can be revoked at any time by the
offeror before the offer is accepted or it may lapse after a
reasonable time.
A
social arrangement cannot become a contract as the parties do
not intend to enter into a legal arrangement. For example, an
agreement by one spouse to pay the other housekeeping money.
For
the sale of land, there is an agreement between the parties when the
buyer offers to buy at a certain price and the seller accepts that
offer. NB there is no contract until exchange