Geoffrey Caesar, Solicitor

A contract is a legally binding agreement between two or more parties that creates rights and obligations for them. In English law, a contract is formed when there is an offer, an acceptance, a consideration and an intention to create legal relations. These are the essential elements of a valid contract, and they must be present for the contract to be enforceable.

An offer is a clear and definite statement of the terms on which one party is willing to enter into a contract with another party. An offer can be made orally, in writing, or by conduct. An offer can be made to a specific person, a group, or the whole world. An offer can be revoked or withdrawn before it is accepted unless it is supported by a consideration.

An acceptance is an unqualified and unconditional agreement to all the terms of the offer. An acceptance can also be made orally, in writing, or by conduct. An acceptance must be communicated to the offeror unless the offeror has waived the need for communication. An acceptance must be made within a reasonable time or within the time specified by the offeror. An acceptance cannot introduce new terms or conditions to the offer. Otherwise, it will be considered a counter-offer, which rejects the original offer and creates a new one.

A consideration is something of value that each party gives or promises to give to the other party in exchange for entering into the contract. A consideration can be money, goods, services, or anything else that has some value in the eyes of the law. A consideration must be sufficient, meaning that it must have some economic value, but it does not have to be adequate, meaning that it does not have to match the value of what is received in return. A consideration must not be illegal, immoral, or impossible to perform.

An intention to create legal relations is a mutual understanding that the parties intend to be legally bound by their agreement. This intention can be expressed explicitly or implied from the circumstances of the case. Generally, commercial agreements are presumed to have this intention, while social or domestic agreements are presumed not to have this intention unless there is evidence to the contrary.

These are the basic principles of contract law in England. However, there are many other rules and exceptions that may apply depending on the type and nature of the contract. You should contact me for legal advice before entering any contract.