Domestic agreements – ones made between family members and relatives; and Boundary agreements – where the parties ay volunteer their services. With these agreements the presumption is that there is no intention to create legal relations. 2 Commercial or business agreements: In business and commercial agreements the courts assume that there is an intention to create legal contractual relations. Discuss examples of commercial agreements in class. Agreement Is there agreement between the parties? Generally characterized by an ‘offer’ by one party and an ‘acceptance’ by another. Important in determining the time, the place and contents of the agreement. Rules relating to offers Rules as to offers 1. 2. 3. . 5. 6. 7. 8. 9.
An intention or willingness to be bound A firm promise Communication of the offer (writing, orally or by conduct) There must be an intention or willingness to be bound or it may be an invitation to treat (Pharmaceutical Society v Boots) It must be a firm promise (Harvey v Pace ) It must be communicated to the offered (R v Clarke) The offer may be made to one person, a group or the world at large (Cargill v Carbolic Smoke Ball Co) All terms must be brought to notice of offered and followed exactly The offer may be terminated by offer/foretell may be kept open if supported by consideration Termination of offer Rules relating to acceptance Acceptance must be made in reliance of the offer The offered must intend to accept the offer – R v.
Clarke (1927) Acceptance must be strictly in accordance with the terms of the offer If the offer specifies a method of acceptance it must be followed – Gilbert] McCall (Status) Pity Ltd v. Pit Club Ltd (1954) Acceptance must be communicated Acceptance must be communicated to the offer either by words or by conduct.