Law Essay Example | Topics and Well Written Essays - 1250 words - 4

Law - Essay Example A contract is usually considered binding once the acceptance is made to the offer and communicated to the offeror. The rules apply to the negotiations that have been made till that point to know to what extend are the parties obliged to fulfill their promises. There is no halfway through, the negotiations will either be binding in the contract or not binding at all. An offer is communicated when the offeror indicates the terms on which he wants to make the offer such as the price of the goods, and gives a clear indication that he intends to be bound by those terms if accepted. Acceptance means that the offeree has unconditionally accepted all the terms of the contract put by the offeror (Andrews, 2011, p. 7). The second element of the contract is that the agreement made under offer and acceptance must not have vague or incomplete negotiations. The agreement must be certain to make sure that the contract is binding. For example when the offeror makes an offer saying that the salary will be mutually arranged between us, the courts hold no agreement between them since the agreement was not certain between them. Some of the factors that affect the certainty of a contract are provisions for clarification, the terms implied by statutes and the previous course of dealings. If there is a provision given to clear the terms later then the agreement will be binding. Secondly, if there are some terms that are implied by statutes though not being agreed by the parties, the contract will be binding. Thirdly, if there are some terms that are understood due to the previous dealings between the parties, the contract will be binding (Harriman,  2009, p. 13). The third element is the intention to create legal relations with the other party. If there will be no intention the courts will consider that no contract is valid between the parties. However if to the onlookers the parties seem to be intending to create