Law 3101A/B Quiz: Can a promise form a binding contract
26 Oct 2018
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Can a promise form a binding contract?
No legal system allows all promises to be enforceable. There
is a binding contract if there is the intention from both
parties to be legally bound in a contract (entering a legal
relationship).
The law presumes that a party only binds itself legally
if there is to gain from the contract.
A purely gratuitous promise must be put through a notarial
deed for the party to think through the action itself.
Consideration: the two parties enter a quid-pro-quo → a
promise must be given for a counter performance
A gratuitous performance can be enforceable because it
lacks consideration
A contract can be suspicious if it’s unequal.
A binding contract is split into two: the offer (by the
offeror) and the acceptance (by the offeree)
Offer: if a proposal can be qualified as an offer it only
needs the acceptance. An offer can be considered so if it
reflects the intention to be legally bound and it’s clear
about the content of the contract.
Revocation: can an offer be revoked before it is accepted?
Different solutions from different jurisdictions:
German, French and Dutch law allow an offer irrevocable if not
stated otherwise.
English law allows an offer to be irrevocable at all times.
Acceptance: if an acceptance has been dispatched by the
offeree, a contract is concluded when the acceptance reaches
the offeror.
