ABSTRACT
The law of contract exists to make sense of agreements, be they small or large, formal or informal, made over the counter or over the internet. Thus, the law of contract is relevant to us every time we go shopping and it is relevant to huge corporations that make multi-million dollar deals with each other. In addition, it identifies those agreements that the law will enforce and those that fall outside the legal framework. Concepts of ‘mutuality’, ‘exchange’, ‘promise’ and ‘bargain’ are central to an understanding of enforceable agreements. Those who enter into agreements do so for mutual benefit and on the basis of promises that will be fulfilled. Both parties hope to gain something of value, hence the idea of a bargain. The retailer who sells goods will hope to make a profit from the activity; the consumer who buys from that retailer is fulfilling a need or want and sees the value of the purchase. The goods are exchanged for a monetary price, with the parties’ intentions clear: they intend this to be a legally binding purchase, so that the retailer can record his sale of stock and the consumer can seek redress should there be a problem with the goods.
