Question

What are the basic elements of a valid contract? What are the elements of an offer? How might an offer terminate? What are the elements of an acceptance? What is the Mailbox Rule? The Mirror Image Rule?

Answer 1

Elements of a valid contract :

1. Offer and Acceptance

2. Intention to create legal relationship

3. Capacity to contract

4. Genuine and free consent

5. Lawful object

6. Lawful consideration

7. Certainity and possibility of performance

8. Legal formalities

Elements of an offer :

1. Communication

2. Commitment

3. Definite terms

1. Communication :

The person making the offer (the offeror) must communicate his offer to a person who may then choose to accept or reject the offer (the offeree). Often, this is not a serious issue to analyze, as the offeror is free to communicate his offer in any means, whether orally (spoken offers) or in writing.

2. Commitment :

Whether the offeror is committed requires an analysis of whether the offeror, in his communication of the offer, intended to be bound by the offer. An intent to be bound may arise through course of conduct, such as explicitly stating “That is my final offer.” There may be a question as to whether the alleged offer is an actual offer or merely an invitation to receive offers. Auctions are a common example of invitations to receive offers, rather than a contractual offer in itself.

3. Definite Terms :

All offers must be definite and specific in their terms. The essential terms of the deal, such as price, manner of acceptance and timing, must be stated. An example is “I offer you my grandfather’s antique watch for $200. You must tell me that you accept this offer in writing, and I must receive it before 2 p.m. on Tuesday, or I will offer it to my brother.”

Offer Terminate :

There are a number of ways for an offer to be terminated. They are events that may occur after an offer has been made which bring it to an end so that it can no longer be accepted. An offer is terminated in the following circumstances:

• Revocation
• Rejection
• Lapse of time
• Conditional Offer
• Operation of law
• Death
• Acceptance
• Illegality

Element of an acceptance :

1. It must be given by the Offeree

2. It must be absolute and unconditional

3. It must be in a prescribed manner

4. It must be communicated to offeror

5. It must be expressed or implied

Mailbox Rule :

The mailbox rule (also called the posting rule), which is the default rule under contract law for determining the time at which an offer is accepted, states that an offer is considered accepted at the time that the acceptance is communicated (whether by mail e-mail, etc). Parties can alter their contract to not use the mailbox rule to and determine between themselves at what time an offer will be considered accepted.

The Mirror Image Rule :

In the law of contracts, the mirror image rule, also referred to as an unequivocal and absolute acceptance requirement, states that an offer must be accepted exactly with no modifications. The offeror is the master of one's own offer.