Business Law

Information related to the aspects that help in identifying the terms which are involved while forming a contract will be discussed in this report. The report will help in understanding the importance of determining different types and nature of contract. It will help in understanding the terms and relation with the performance of the contract, study of the elements which helps in formation of the contract are also to be analyzed. The different type of liabilities under the law of tort are also provided to study the impact of the performance and non-performance of the duties. Peter Abraham is an independent contractor who is willing to know that the contract which is formed between the parties is formed in the presence of various elements which helps in forming the standard contract. The elements are as follows: Offer: The statement that helps in allowing the party to present the terms of the contract is known as offer. Offerer is the interested party that provides the offer. It is necessary that the offer which is being made by the offer shall be clear to understand and should have proper meaning. Notice should be made that the offer that is to be presented should be different from an invitation to the offer. It is necessary that intent to present the offer should be clear so that contract could be created. Invitation to the offer is the aspects that are being to anyone who can understand its meaning and interpret the message easily (Collins, 2008). Purpose of the invitation is to create the awareness of the possibility that could help in generating the contract for the said purpose for the said party that is interested in creating a contract. Mere possibilities could be created by availing the invitation to offer but it is not intent to create a contract. According to the case of Carlil v Carbolic Smoke Ball an advertisement in the newspaper or the display on the shop window can only be considered to be an invitation to the offer and not an offer.