Essential Elements Of An Offer And Contract

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The first essential element in the formation of a contract is an offer and an acceptance. An offeror is a person WHO offer something to another party and an offeree is a person WHO accept the offer from the offeror. Offer and acceptance is the easiest element of the contract to be applied, because in this element a person who will perform the contract or agreement with another person does not need to create a contract that is valid in the eyes of the law, only by the agreement of both parties and ends with a handshake . For example, when A says to B, "I sell this phone to you at a price of 5 million" and B says, "I accept your offer". In this case the contract is made by both parties are valid and legitimate because someone has offered something to the other party and the other party has accepted the offer, even though the contract or agreement is …show more content…

2.1.3 Held
According to Pathak (2013) there was a unilateral contract involving the offer (the Carbolic Smoke Ball company) and the acceptance (Carlill), and it was valid . Therefore, Carlill was entitled to be granted the reward. Herbert Asquith said that it was only a mere advertisement – in fact it was not, because the company has stated earlier that it has deposited 1,000 pounds as the guarantee to demonstrate sincerity. The ad has stated everything clearly thus the contract was enforceable. Although according to communication of acceptance rule, the offeree needs to communicate an intention to accept.
In this case, it was implied that Carlill has accepted the contract through her action of buying and using the smoke ball. Additionally, Carlill underwent some problem in using the smoke ball so there was clearly a consideration. The company also received profit because people have bought their smoke balls.

Paul Felthouse v Bindley (1862) 142 ER 1037

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