MCS 3040 Chapter Notes - Chapter 6: Posting Rule, Estoppel, Standard Form Contract
Document Summary
An agreement: parties must be in an agreement before a contract can take place, they must have reached a consensus as to their rights and obligations. Offer: an offer is a promise to enter into a contact on specified terms as soon as the offer is accepted. In law, the latter form of communication is called an invitation to treat and has no legal consequences. Invitation to treat is an expression of willingness to do business. Whether a communication is an offer or an invitation to treat depends on the speaker"s intention, objectively assessed. They do this through advertising their existence, as well as describing the products they sell and prices they charge, especially when those prices have been reduced: for practical reasons, these advertisements are generally not classified as offers. Termination of offer: an offer can be accepted only if it is alive , meaning it is available to be accepted.