LAW 122 Chapter Notes - Chapter 7: Fax, Posting Rule, Contract
Document Summary
It is important to note that the contract may continue even after the exchange of value, for example if there are some warranties for the future. A contract will not arise without an intention to create legal relations. The parties must have intended to create a legally enforceable agreement: the courts ask whether a reasonable person would have believed that the parties intended to enter into a contract. After the intention to create legal relations, there must also be a mutual agreement through offer and acceptance: an offer is an indication of a willingness to enter into a contract on certain terms. The person who offers to enter a contract is the offeror; the person who receives an offer is called an offeree: the courts classify some statements not as offers, but rather as invitations to treat. An invitation to treat is not an offer, but an indication of a willingness to receive an offer.