When is a contract binding... Watch

Alex86
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I would be grateful if anyone could help clarify a couple of points.

1) Is a contract only binding upon the exchange of valuable consideration by both parties = a valid agreement and intention to be bound will not bind a party but simply form the foundations of a valid contract upon which, if valuable consideration is given, will be binding.

2) Is valuable consideration inherent in the promise made within the acceptance and offer stage, ie I will give you £10 (consideration by offerer) and I will wash your car for £10? (Consideration offeree), and so in actual fact the contract is binding at the agreement stage?

3) In a an invitation to treat example, when would the offerer be bound?

Many Thanks,

Alex
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(Original post by Alex86)
I would be grateful if anyone could help clarify a couple of points.

1) Is a contract only binding upon the exchange of valuable consideration by both parties = a valid agreement and intention to be bound will not bind a party but simply form the foundations of a valid contract upon which, if valuable consideration is given, will be binding.
Promises to do something or give something which would be valuable consideration are themselves valuable consideration. So there is no need for anything tangible to 'change hands' to make a contract, an exchange of promises is already a contract.

I think that answers (2) as well. Reciprocal promises, one to pay £10, the other to wash a car for £10, will make a contract (assuming other elements such as ICLR are there)

I don't really like the use of the phrase 'binding contract', a contract is binding by definition, if something does not have legally-enforceable obligations on both sides then it is not a contract. Therefore the idea of a 'non-binding contract' does not make sense. It might be a 'non-binding agreement' but it is not a contract at all.

3) The offeror is bound as soon as all the elements of a valid contract are present - offer, acceptance, consideration, ICLR, capacity. "Invitation to treat" is not one of those elements, its only relevance is to explain that something is "not an offer".
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karolinaw
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when there is offer and acceptance there is a contract...invitation to treat is not a contract
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username1039383
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if there is a valid contract then it is binding however informal contracts between say a married couple will be ruled out by the courts
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