Updating author: Olga Aikin

On this page:
Summary
Future developments
Practical example
Action point checklist
Key references
Questions and answers
The offer
Conditional offers and references
Acceptance and counter offers
Collateral warranties
Consideration
Intention to create legal relations
Identifying the contract terms
Written terms
Written particulars

Summary

4.102

• In order to separate legally binding contracts from other agreements the law requires there to be an identified offer. An offer has to be distinguished from information such as advertisements and brochures which are 'invitations to treat'. (See 4.104 The offer)
• The person making the offer should have authority to do so. (See 4.104 The offer)
• Offers that are subject to conditions such as 'satisfactory references' are incomplete until the condition is satisfied and acceptance of an incomplete offer does not create a valid contract. (See 4.105 Conditional offers and references)
• Acceptance must be by a positive act. (See 4.106 Acceptance and counter offers)
• Promises made during an interview may be legally binding. (See 4.107 Collateral warranties)
• Each party must get something from the contract - this is 'consideration'. (See 4.108 Consideration)
• If the parties intend that the contract shall not be legally binding it cannot be enforced in the courts. (See 4.109 Intention to create legal relations)
• The terms of the contract are fixed when the contract is made. (See 4.110 Identifying the contract terms)
• Contract terms should be put in writing, either in an offer letter or contract or through written particulars. (See 4.111 Written terms and 4.112 Written particulars)

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Future developments

4.103 Working Time Directive: Following the failure of member states, the European Parliament and the European Commission to reach an agreement on the European Parliament’s proposal to remove the working time opt-out, the opt-out will remain. Some member states, including the UK, insisted that the opt-out is essential, particularly to health services.