An Agreement Is Offer Acceptance Consideration
According to the common law, the elements of a contract; Offer, acceptance, intention to create legal relationships, to take into account and legality of the form and content. Trade agreements assume that the parties intend to be legally bound, unless the parties explicitly state otherwise, as in a heads of agreement document. For example, in Rose & Frank Co v. JR Crompton & Bros Ltd, an agreement between two commercial parties was not obtained because an „honour clause“ in the document says, „This is not a commercial or legal agreement, but only a declaration of the parties` intention.“ The parties must intend to make the offer and acceptance legally binding: the so-called „contractual intent“. For example, if I work for you on Saturdays and Sundays, and you say, „OK, I accept that you work on Fridays and Saturdays,“ you have made a counter-offer. You did not accept my offer on the proposed terms. Contract law is based on the principle expressed in the Latin phrase pacta sunt servanda („Agreements must be respected“).  The Common Law of Contract arose from the meantime defuct writ of assumpsit, which was originally an unlawful act based on trust.  Contract law is covered by the ordinary law of obligations, together with the unlawful act, abusive enrichment and reimbursement.  The existence of consideration distinguishes a contract from a gift. A gift is a voluntary and free transfer of goods from one person to another, without anything valuable being promised in return. Failure to comply with a gift promise is not applicable in breach of the Treaty, as the promise is not taken into consideration. 3.
Acceptance – The offer has been clearly accepted. Acceptance may be expressed by words, deeds or performances, as provided for in the Treaty. As a general rule, acceptance must be in accordance with the terms of the offer. If this is not the case, acceptance is considered a refusal and a counter-offer. This does not depend on their subjective state of mind, but on the reflection on what was communicated between them by words or behaviors and whether it objectively leads to the conclusion that they wanted to establish legal relations and that they had agreed on all the conditions that they considered essential or that the law requires to establish legally binding relations. If the acceptance is transmitted to the wrong address in an expressly or implicitly authorized manner, it is effective only upon receipt by the supplier. A wrong address is any address other than the implicitly authorized address, even if the provider would be able to obtain acceptance at the replaced address. Silence is rarely a valid form of acceptance, unless one of the following exceptions applies: If a bidder claims to accept a bid, but under different conditions, no contract is concluded at this stage.
This is due to the fact that the tenderer has made a counter-offer which, if accepted, constitutes the terms of the contract. In our next module, we turn to the last element of a binding contract: the rule that consideration is necessary for the applicability of a contract.. . .