A contract is an agreement of rights and obligations between 2 or more parties, accepted and enforceable by law. There are 4 vital actions required for contract formation which include offer, acceptance, intention to create a legal relationship and consideration. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay An offer is a promise between the parties that they are willing to accept the terms and conditions stated in the contract. An agreement is concluded when the offeree accepts the offeror's offer. The offer may be made by conduct, in writing or orally. To be legally bound to their obligations it is necessary to enter into a contract. Anyone who violates the contract is liable to judgment. An offering can be made to a specific individual, to a group of people, or to the world. Acceptance of an offer is the offeror's expression of approval of the terms and conditions of the contract. Acceptance must constitute unconditional and unreserved assent to the proposal, otherwise it is equivalent to a counter-proposal. Acceptance of the offer may occur through behavior, in writing or orally. According to the general rule, acceptance is communicated when the offeror actually receives the contract. The intention to create legal relationships means that the contracting parties must intend their agreement to be legally binding. If either party breaches the contract, they are liable to be taken to court. It is important that the parties respect the terms of the contract and act as insurance for both the offeror and the offeree. Consideration is something given, promised, or done by one party in exchange for a promise by the other party. Each party should provide something of value to convince the other party to enter into the agreement. One party's promise need not be equal in value to the other party's promise. In order for the recipient of the promise to keep the promise, he or she must demonstrate that he or she has given this matter consideration. If this intention is not found, the contract is not binding. The announcement published on the online site, Cancellable by Henry, is considered merely an invitation to negotiate. Henry is not the manufacturer of the phone. If the ad is created by the manufacturer, it can be considered on offer. The offer is made by the online buyer. The deal is formed when Henry accepts the client's offer. This is demonstrated by the case of Partridge v Crittenden (1968), where an online advertisement is simply an invitation to treat, not an offer. The contract will be established if Henry accepts the offer. A contract concluded electronically is legally valid and enforceable. The ad states that "the smartphone will be sold to the first buyer who offers me $388" is a price statement, not an offer. This is an invitation to treat, supported by the case study Harvey v. Facey (1893), which only serves to convey information about the price of the telephone, not an offer because there is no contract. Henry can choose whether he wants to sell and who to sell the phone to because he is not legally obligated to sell it to any particular party. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay it is reasonable for Henry to sell the phone to whoever offers the highest price for the phone. Henry doesn't need to sell the phone to Jason even though he would like to buy it for $368 because he didn't accept the offer. Therefore, Henry is not obligated to sell the phone to Jason. This is supported by the case study Spencer v. Harding (1870) that a contract will be made known when the offer is accepted by the offeror. Works CitedStone, R. (2019)..