contract law Coursework example
High school
Finance & Accounting
Pages 6 (1506 words)
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Law of Contract This question pertains to the basic formation of contract and focuses most importantly on the postal rule, law in respect of instant communication devices and whether the contract in this particular case was breached. The formation of contracts and its legal effectiveness is a subject which has been critically reviewed in case law and statutes.


In order to determine whether there was a valid legal contract between Mr. Spike and Mr. Tom and to best advice the parties it is necessary to discuss the above mentioned essential elements for formation of a contract and how the presence of each element is achieved. An offer has been defined as an expression of willingness by one party known as the offeror, to contract or be bound on stated terms, provided that such terms are accepted by the party to whom the offer is made that is the offeree. The courts have drawn a distinction between an offer and an invitation to treat, as the latter is merely an expression of willingness by one party to enter into negotiations and is not unconditional and there is a lack of intention to create legal relations. The most important and land mark cases which distinguished between an offer and invitation to treat are of Gibson v Manchester City Council1 and Storer v Manchester City Council2. In Gibson, where treasurer had sent a letter to Mr. Gibson, stating that council may be prepared to sell the house, was held to be an invitation to treat, which was further confirmed by the fact that Mr. Gibson was asked to make a formal application to purchase the house. The courts therefore took into account the correspondence between the parties. ...
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