ABSTRACT
This chapter provides a layman's guide to the main points of English contract law as it applies to commercial organizations. There are four essential elements for a binding contract to be formed between two companies: offer, acceptance, the intention to be legally bound and consideration. After contract formation, a contract may be upset by one of factors namely stake, misrepresentation, duress and frustration. The chapter considers the essential elements of a contract, factors which make a contract invalid and the terms or conditions and warranties. Conditions are essential terms, the breach of which allows the injured party both to rescind the contract and to claim damages. A warranty is a lesser term for the breach of which the only remedy is in damages. The object of an award in damages is to place the injured party in the same financial position as they would have been had the contract been performed properly, provided that the losses are not too remote.
