FORMING A CONTRACT PROFESSIONAL ENGLISH IN USE FOR LAW

 

PROFESSIONAL ENGLISH IN USE FOR LAW 31. FORMING A CONTRACT

 

A Basic principles The basic principles of contract law in the English system arise from established custom and rules and are fundamental to all areas of law in practice. Reference is made to these principles in drafting and interpreting the provisions of any legal agreement, such as a lease, a loan agreement, a sales agreement, a consultancy agreement, a hire purchase agreement, a hire contract, or a service contract, etc. The principles of contract law will determine whether and at what point a binding agreement has been made between the parties concerned. B Formation of a contract Formation of a contract requires the presence of four essential elements: ·       Offer The contract must contain the basic terms of the agreement and be capable of acceptance without further negotiation. This does not mean that the initial communication between parties will in itself constitute an offer. For example, in an auction situation, the seller, known as the vendor, may make an invitation to treat – invite an offer – by setting out the conditions of sale (for example when payment will be made) with the exception of the price. The offer is submitted by the purchaser, who offers to purchase at a specified price and will usually incorporate the terms of the invitation to treat into his/her offer. EXERCISES 31.1 Complete the conversations with the correct legal agreement from A opposite. We rented a car for  a week in Austria What did the (1)____________________ cover? 31.2 Make word combinations from B opposite using words from the box. 31.3 Find answers to these FAQs from a law firm’s website. Find reasons for your answers in B opposite. 1. Building work started on a major construction project before all the elements of the contract had been agreed. Both parties expected that reaching an agreement would not be a problem. However, final agreement was never reached and eventually the claimants stopped work and claimed for work done. The defendants counter-claimed for the breach (break) in the contract. Under English law, was there a contract?

ANSWER KEY