Contacts

Is defined as the legally binding agreement or relationship that exists between two or more
parties to do or obtain from performing certain act.

The following are the elements of contracts;

An offer;
An offer is expression of readiness to contract on terms specified by the offer or which if
accepted by the offered will give rise to binding contract.

In other words an offer is a desire to enter into contract.

An offer has rules that explains it better way.

An offer may be made orally, in writing or by conduct that is to say peoples action in certain
circumstances can bee classed as an offer.

The offer must be firm and final, meaning an offer must be conclusive in nature and should
leave no room for negotiation.

An offer can be made to air individual, a group of persons or the public at large, the leading
authority on these point is the case of carlii vs carbolic smoke ball company (1893).

The defendant company advertised in the newspapers that it has manufactures a drug called
smoke ball and that it was prevention against influenza.

The defendant promised that it would offer 1000 pounds to anyone who had caught influenza
after using it in accordance with certain condition the defendant also stated that a sum of 1000
pounds had been deposited with the bank to shoe sincerity in the matter. Relying on the advert,
the plaintiff bought the drug and used it as directed by the defendant but got influenza.

She also claimed for the 100 pounds but the defendant company company refuse to pay her. She
brought an action for branch of contract against the company the defendant argued that;-

Even if there was an offer, it wouldnt be binding since it was not made to a particular person.

Acceptance
This is an indication to enter into and be bound by the contract. It is appositive response to an
offer acceptance can be, in writing, oral form or by constuct.

Acceptance has rules that governs it

Communication of acceptance

The general rule is that acceptance must be communicated to band received by the offer or. It is
condition therefore that silence cannot amount to acceptance.

This principal was stated in the case of felt Hotel Vs Binding (1863).

The plaintiff wrote to his nephew offering to buy one of his horses adding if I hear no more
about firm I will consider that horse is mine at 30 pounds and 15 pences the nephew did not
reply but told the defendant sold that horse to anybody else . The defendant sold the horse by
mistake and plaintiff sued him for damages. The issue was weather was silenced by the nephew
amounted to acceptance.

Court had that since nephew had to communication to his acceptance to the plaintiff, there was
no contract of self and the auctioneer was not reliable. Court therefore concluded that silence
does not amount to silence.

Consideration

Consideration is defined as a benefit