While for most contracts there is no requirement to follow a particular form or format,1 in practice most contracts tend to be in written form. At a basic level, a contract must be offered and accepted, with the support of consideration.
Offer and acceptance
The basic elements of a contract are 1) offer, 2) acceptance of the specific offer, 3) consideration and 4) intention to create legal obligations.
Offer, invitation to treat and unilateral contract
An offer is an expression of willingness to enter into a contract on specified terms. Once an offer is accepted by the other party, the offer will turn into a binding contract. It is important to distinguish an offer from an invitation to treat, as the latter is merely regarded as the invitation to make an offer.
Generally, advertisements,2 brochures, catalogues,3 price lists,4 and menus constitute invitations to treat instead of offers. Nevertheless, an exception to this general rule is a unilateral contract. A unilateral contract usually will arise when one party promises to offer the other party a reward if the other party performs a specific act. In such a case, the promisee is not under any obligation to perform the act. However, if the promisee decides to perform the act, the promisor will be obliged to fulfil the promise.
