ABSTRACT

The rules relating to the formation of contracts are designed to establish the moment a contract comes into existence so that the parties are clear about the exact time and place that their obligations to each other begin. This is clearly important if people are to be able to plan in advance or if a contractual relationship breaks down and one of the parties seeks to be compensated. In considering whether a contract has been formed, English law looks for agreement between the parties. The typical contract is conceived of as a two-sided bargain voluntarily and deliberately entered into by two people. This chapter focuses on agreement and is concerned with the following questions. First, how do lawyers analyse the process by which the parties to a contract reach agreement? Secondly, how does business practice relate to the legal analysis of agreement?