Contract Scenario

Pages 10 (2510 words)
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This Scenario raises the issues of (a) offer and invitation to treat (b) acceptance of offer and communication of acceptance (c) consideration (d) instantaneous communication. These are the issues that must be taken into consideration in assessing whether or not a contract has come into existence.


One of the first requirements in order to a valid contract to exists is that there must be an offer and an acceptance of that offer.1 A contract will be deemed to exist when an offer has been made by one party which has been accepted by the other party for a mutually agreed consideration, and the acceptance has been communicated to the offerer. In this scenario, at the outset, a distinction needs to be made between an offer and an invitation to treat. An offer is an indication of the willingness to contract, with the intent to be bound by it as soon as the offer is accepted, whereas an invitation to treat is when offers are being solicitor which the offeree is then free to accept or receive.
The consideration in this case is the amount of 4000 plus pounds which is the sum payable for receiving the contract in exchange. In the case of Currie v Lisa2 consideration has been defined as "' some right, interest, profit or benefit accruing to one party, or some forebearance, detriment, loss or responsibility given, suffered or undertaken by the other." In this case, the question of consideration can be fairly easily established since Andrea is receiving a sum of cash to compensate her for the detriment she is suffering through the loss of her caravan. ...
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