| For contracts to exist there are four major | | | | provided that there was an intention to creating |
| elements which must be satisfied. | | | | relations and valuable consideration has passed |
| 1. There must be an offer | | | | then if B accepts that offer then there is a legally |
| 2. There must be an acceptance of an offer | | | | binding contract created. |
| 3. There must be valuable consideration passing | | | | What is the timeframe under which we B can |
| between the parties of the contract | | | | accept A's offer. In the absence of the parties |
| 4. There must be an intention between the | | | | stating a timeframe (e.g. would you like to buy |
| parties to create a legally binding agreement which | | | | my car, you have two days to decide) then a |
| will be backed up and enforced by the courts of | | | | reasonable timeframe for acceptance will be |
| the land. | | | | inferred by the courts. What is a reasonable |
| This article will be looking at the first element of | | | | timeframe depends on the circumstances. Clearly |
| the creation of a contract, the offer, what it is | | | | if A makes an offer to B to sell a painting for |
| and how this affects the contract and then look | | | | $1000 and B says he needs time to think about it |
| at what a counter offer is and how this affects | | | | and then comes back 11 months later saying I |
| an offer. | | | | would like to accept your offer and buy your |
| The definition of an offer is fairly straightforward: | | | | painting as offered for $1000 then if A says no |
| "I will sell you my car for $4,000" | | | | then B cannot sue him for breach of contract |
| "I will be your personal assistant for 6 months for | | | | because A can rightly say that his offer was |
| $20,000" | | | | withdrawn over the passage of time. |
| "I will build you an airport terminal with car parking | | | | It is important to note that once an offer has |
| for 5,000 cars for $350 million"are all examples of | | | | been made it is capable of being withdrawn by |
| valid offers. | | | | the person making the offer at any time prior to |
| Once an offer has been made it is capable of | | | | its acceptance provided that it was not promised |
| being accepted. If A makes an offer to B then | | | | to keep the offer open for a set period of time. |