Aat Credit Control Legislation

A contract is a legally binding agreement between two parties.
The offeror is the party making the offer.
The offeree is the party accepting the offer.
The law of contract is the branch of the civil law which determines whether or not a promise is legally binding (i.e. enforceable by a court of law)
There are certain requirements if a contract is to be valid:
• Offer and acceptance (i.e. an agreement)
• the intention to create legal relations (i.e. the parties must be willing to submit to the authority of the law and be bound by their contracts)
• consideration, in that both parties must do, or promise to do, something as their side of the contract
• the parties must have the capacity, or ability, to contract and submit themselves to the authority of the law (children and mentally disordered people are restricted)
• the parties must genuinely consent to the terms of the contract in that they must not have been mistaken by the contract terms, or lied to in negotiations – there must be certainty of terms
• the contract itself must be both legal and possible
• written formalities may be observed in some situations
An offer is a definite and unequivocal statement of willingness to be bound on specified terms without further negotiations.
If you make an offer it means that you are stating that you are willing to be bound to a contract in its current form with no changes required.
An offer can be in any form – oral, written or by conduct. However it is not effective until it has been communicated to the offeree. For example, if a reward is offered for the return of a lost item, it cannot be claimed by someone who did not know of the reward before they returned the item.
An invitation to treat is not an offer. An invitation to treat means an invitation to the other party to make an offer. An example is an advertisement, price ticket or trade price list where a written order from a customer is then the offer.
Once an offer has been made the...