Contract Law Essay Example | Topics and Well Written Essays - 2250 words - 2

Contract Law - Essay Example Amber has made an offer to pay David  £20,000 after supplying the computer software. David accepted the offer and by commencing to fulfil his obligations, David has simply accepted to be bound by the terms of the contract. The terms of the contract are that David would be paid  £20,000 and finish the contract by 30/05/04. Therefore there exists one of the essentials of a valid contract i.e. consensus and ideam a part from offer and acceptance. This principle refers to a ‘meeting of the minds’. It must be shown that both parties understand the subject matters of the contract before agreeing (assenting). None of the parties i.e. between David and Amber can deny knowledge to the terms of the contract. However, an offer terminates if a counter offer is made to them. This is a reply to an offer whose effects is to vary the terms of the original offer. A counter offer extinguishes the original offer and the person to whom it was originally made cannot move it. However, it can result in a contract if its terms are accepted by the original offers.