1. Intention to be bound
1.1. Parties to business and commercial agreements are intended to be legally bound. (SUBJECTIVE)
2. Consdieration
2.1. The price paid by the promisee for the promise of the promisor
2.1.1. unilateral contract: A promise to pay B on the condition that B does something
2.1.2. Bilateral contract: a promise in exchange for a promise
3. Offer
3.1. Clear and unambiguous undertaking to be bound by specific terms which become binding on acceptance.
3.1.1. Invitation to treat
3.1.1.1. exists when there is an opportunity for an offer to be made
3.1.2. Response to offers
3.1.2.1. accept the offer and all its terms, reject the offer, ask further information or clarify, substitute for a new offer
3.1.3. Counter offer
3.1.3.1. Amounts to the rejection of the origional offer If a counter offer is made the first offer is invalid
3.1.3.1.1. ]
3.1.4. termination of offer
3.1.4.1. rejection of offer, lapse of time, death of a party
4. Acceptance
4.1. Unconditional assent by the offeree to the terms of the offer. Usually only the offeree can accept
4.1.1. No conditional accptance
4.1.1.1. Acceptance can only be an unqualifies assent to the terms of the offer
4.1.2. postal rule
4.1.2.1. acceptance is effective where written acceptance by post is contemplated by the parties (applies to letters only)