Contract Law (Introduction to Business Law) Essay

Contract Law (Introduction to Business Law) - Essay Example s to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the â€Å"offeree.3† The â€Å"expression4† may take different forms. The intention element is an objective consideration and the case of Smith v Hughes 5emphasised the relevant consideration as being a focus on how a reasonable person would view the situation. Seddon et al further assert that the â€Å"test for existence and the scope for an agreement is that of an objective manner. When a test is objective, it takes account of what the parties actually did say in order to make an offer and agreement6†. Moreover, in the case of Storer v Manchester City Council7 it was asserted by Lord Denning that â€Å"a man cannot get out of a contract by saying: I did not intend to contract† if by his words he has done so†8. Furthermore, in the case of Acme Grain Co. v Wenaus 9it was asserted: â€Å"to constitute a contract, there must be an offer by one person to another and an acceptance of that offer by the person to whom it is made. A mere statement of a person’s intention or a declaration of his willingness to enter into negotiations is not an offer and cannot be accepted so as to form a valid contract10†. Additionally, the law distinguishes between an offer and an invitation to treat, which is not an offer but an indication of willingness to negotiate a contract11. For example, in the case of Gibson v Manchester City Council12, the words â€Å"may be prepared to sell† constituted an invitation to treat and not a distinct offer. Indeed, the Gibson decision challenged the traditional view for formation of contractual agreement. In this case, Lord Denning asserted that when considering whether there is a binding contractual agreement, it could be argued that: â€Å"there is no need to look for strict offer and acceptance. You should look at the correspondence as a whole and at the conduct of the parties and see therefore