There are many types of business agreements, the most popular categories are sales, employment, independent contractor and confidentiality. A contract can be drawn written document or oral promise between two or more parties. Whether written document or oral promise agreements, must have the following elements to legally bind a contract: offer, acceptance, intention and consideration.
Firstly, an offer and acceptance between both parties to form an agreement, the parties have an intention to create a legal relationship; it has to provide consideration to both parties. In this case Ben is interest in buying Helen ‘s car, this action is an invitation to treat. Helen gave the lump sum 30,000 to Ben. This offer was framed. However she didn’t accept the offer to sell the car to Ben for 30,000.In this case Ben and Helen didn’t set up a valid contract, therefore the price does not constitute a binding offer to the contract. Helen is not obliged to sell her car and she also can ask the offers and selection which one accepted for her price. In this distinction it can be argued that, this is in no way an acceptance, since no consideration is given, this is important because binding contract while "accepting", even Ben is accepting Helen’s price by mail but there has not been an acceptance on the part of either Ben or Helen here, They didn’t apply the rules of offer and acceptance in a given
Secondly, a valid contract involves two important rules of intention and consideration The Law divides agreement intention into two groups: Social agreement and Business agreement. We can’t find Helen is intention to make a legal relation with Ben because Helen said ‘’if she were to sell the car’’, so Helen may be said a ‘’mere puff’’.’’Mere Puff ‘is a statement, which by its nature, and in the context in which it is made, is not intended to have legal relation. It is used in contract law to describe the statements of a contract. When a statement is a...