Elements of a contract
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Read the following text and discuss the situation in Bulgaria.
In common law jurisdictions, there are four essential elements to the formation of a contract: offer, acceptance, consideration, and intention. The offer made by one party and its acceptance by the other party expresses the two parties’ “concurrence of wills” or “meeting of the minds”. The intention of the parties to be legally bound is usually presumed in agreements of commercial nature. When supported by sufficient evidence these three elements fulfil one of the two crucial requirements for entering into a valid contractual relationship, the other being the exchange of good consideration between the parties. Under common law, in order to be legally binding a contract must be “met with” consideration and only a person who has provided consideration can enforce rights under a contract.
An offer is an expression of willingness made by an offeror to reach an agreement on certain terms, which shall become binding as soon as it is accepted by the person to whom it was addressed. An invitation to treat (invitation to bargain in the US) should not be confused with an offer: the clearest example for an invitation to treat is a tender (bidding in the US) procedure.
An acceptance is a final and unqualified expression of assent to the terms of an offer. A qualified answer, i.e. a counter offer, is deemed a rejection of the initial offer.
In common law jurisdictions, there are four essential elements to the formation of a contract: offer, acceptance, consideration, and intention. The offer made by one party and its acceptance by the other party expresses the two parties’ “concurrence of wills” or “meeting of the minds”. The intention of the parties to be legally bound is usually presumed in agreements of commercial nature. When supported by sufficient evidence these three elements fulfil one of the two crucial requirements for entering into a valid contractual relationship, the other being the exchange of good consideration between the parties. Under common law, in order to be legally binding a contract must be “met with” consideration and only a person who has provided consideration can enforce rights under a contract.
An offer is an expression of willingness made by an offeror to reach an agreement on certain terms, which shall become binding as soon as it is accepted by the person to whom it was addressed. An invitation to treat (invitation to bargain in the US) should not be confused with an offer: the clearest example for an invitation to treat is a tender (bidding in the US) procedure.
An acceptance is a final and unqualified expression of assent to the terms of an offer. A qualified answer, i.e. a counter offer, is deemed a rejection of the initial offer.