P1 – Identify the legal criteria for offer and acceptance in a valid contract.
In this task, I am going to describe and briefly explain contracts, in which I will then explain the legal
criteria that needs to be followed in terms of offer and acceptance, within a valid contract. Firstly, a
contract is “an enforceable agreement made between two or more parties” 1. The contract that I
have decided to is an employment contract that my friend has from Citi Bank for his career ready
internship, in which he will be doing this year.
Offer
An offer is a “promise that is intended to be followed” 2 in a contract. There are different types of
offers that are involved in contract law such as an invitation to treat and counter offers. Invitations
to treat are offers where someone is willing to receive offers from other people in terms of trading
or doing business, in which the Offeree can either accept or reject. Counter offers are where the
Offeree rejects the offer from the Offeror but then is willing to make an offer back to the Offeror and
then the Offeror would either make an agreement or reject the Offeree’s counter offer. In order for
offers to be made, there needs to be communication, in which the methods should be in written or
verbal communication so the offer can be made valid. Although, if the offer is a bit too vague, then
the offer could possibly be invalid. In terms of the contract that I am using, Citi Bank is offering my
friend a salary of £17,745 per annum if he turns up to his interview and the pre-employment
screening.
Acceptance
Acceptance is where there is a “formal agreement to accept an offer” 3 after an offer has been made
between two or more parties and the offer meets the certain terms and satisfies the parties within
the contract. In order for acceptance to come into place, the offer must be valid and it has to satisfy
the Offeree’s needs which is the person that is being given an offer from the Offeror. Although, there
are certain factors that need to be taken into consideration when accepting an offer. One of the
main factors that needs to be taken into consideration is how the offer must be accepted as the
Offeror needs to be communicated so they’re aware that the Offeree has accepted the offer made,
therefore communication is required to confirm the acceptance of an offer. As well as this, the
confirmation of acceptance needs to be in a form so the offer is more formal and it is a sensible
agreement. However, if there is no form required, then it is possible for the acceptance of an offer to
be confirmed by either written or oral communication. Acceptance doesn’t strictly need to be in a
form as longs as the way the offer is being accepted satisfies the Offeror and the Offeree. In terms of
the contract that I am using, there is acceptance shown as there is a confirmation that my friend is
going to do the internship but having to turn up to the interview and pre-employment screening
which is the offer in the offer stage.
P2 – Explain the law in relation to the formation of a contract in a given situation.
In this task, I am going to explain the law in general in terms of a contract, using the contract from
P1. In contract law, there is more into it than Offer and Acceptance which has already been
addressed in P1. There are more factors that relate to contracts such as Capacity and Consideration
that play a part when entering a standard contract. As well as this, there are individual effects of the
person entering the contract such as being a minor, having a mental disorder or being drunk or not
in the right state of mind.
1
Pearson Edexcel, Business Book 1, Level 3, Page 80 [Accessed 22 May 2017]
2
Pearson Edexcel, Business Book 1, Level 3, Page 82 [Accessed 22 May 2017]
3
Pearson Edexcel, Business Book 1, Level 3, Page 83 [Accessed 22 May 2017]
