Formation of a Simple Contract Offer
Rules governing: 1. Must be communicated 2. May be made to the world 3. May be revoked at any time 4. Distinguished from binding options and from invitations to treat
+
Acceptance
Rules governing: 1. Must relate to the offer 2. Mental acceptance (without overt action) is insufficient 3. Must be unqualified 4. Method must conform with offer 5. If offer is silent as to method, that chosen is to be appropriate 6. If mailed, effective from time of posting 7. Communication by agent to be authorised 8. Communication may be dispensed with
=
Agreement
Other possible responses
Revocation
Rules governing: 1. May occur any time before acceptance 2. If mailed, not effective until received
Rejection
Rules governing: 1. May be express 2. Will be implied from counter-offer, but not from request for information
Lapse
Rules governing: 1. On notice of death of offeror 2. If not accepted within prescribed or reasonable time 3. If conditions not fulfilled
=
No Agreement
Agreement
+ Intention
+ Consideration = Contract