Contract Law - Formation of the contract
A valid contract requires: (1) an agreement; (2) an intention to create legal relations; and (3) consideration1. Whilst each of these three requirements receives separate treatment2, they must in reality be looked at together3.
The major part of this section of the title is concerned with an analysis of the formation of agreement between two or more parties of competent capacity4. Whilst the general principles of formation of agreement5 are applicable to all types of contract6, two cases require separate treatment: (a) agreements made through the post7; and (b) written agreements, and written terms in oral agreements8. Moreover, in all cases the consent necessary to any agreement may be affected by mistake or other factors9.
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