Contract Law - Notes on Agreement

CONTRACT Law
AGREEMENT

In general a contract requires:

1. An agreement (or what the law regards as an agreement – see under mistake)
2. An intention to create a legally binding relationship (though this is often “presumed”)
3. Some “consideration” – i.e. some transfer or promise of value in exchange for the undertaking which it is sought to enforce. Compare “I will sell you my car” and “I will give you my car”.

Probably all legal systems have something like 1 and 2. 3 is peculiar to the common law family.

Unilateral and bilateral contracts. We shall come across this distinction very soon so it is as well to get it out of the way now. A bilateral contract is one where there are promises on both sides. Thus an agreement for you to buy my car is more fully expressed as “I promise to transfer the car; you promise to take it and pay for it”. A unilateral contract is one in which only one party makes a promise and requests and act ...