The Rules on Formation of Contracts Essay Example | Topics and Well Written Essays - 1000 words

The Rules on Formation of Contracts - Essay Example The first thing next morning, Kevin went round to Jack’s house and, as soon as Jack opened the door, told him that he would pay  £2000 for the motorcycle alone. Jack said that he already sold it to someone else. The formation of a legally binding contract requires a valid offer, a valid acceptance, an intention to create legal obligations and consideration. An offer is a valid offer when it is legal, clear, and communicated to the offeree. It must be clear and without any ambiguities. Acceptance also needs to be properly communicated. The person to whom an offer is made must accept the exact terms of the offer. Once an offer is accepted, it becomes a promise. The parties must have an intention to be legally bound by the terms of their agreement. When an agreement becomes enforceable by law, it becomes a contract. There a must be a consideration for both the parties involved. There must be something for something for both the parties. If these elements are present in the given scenario, the dealing between Kevin and Jack would be regarded as an agreement and, being enforceable by law, a contract. The formation of a contract initiates through an offer which is â€Å"an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed†1. In the given case, Jack sent a text message to Kevin in which he offered him a motorcycle for the price of  £2000. He communicated his offer to the addressee, Kevin, through a proper mode of communication. Also, there was no ambiguity in his offer since the subject matter was stated clearly. Therefore, Jack made a valid offer to Kevin. Jack had told Kevin that his offer was open for acceptance till 10 am on the next day. Kevin sent a reply to Jack in which he accepted Jack’s offer and asked if the price included a leather suit. Kevin had accepted Jack’s  offer in the first part of his text message.