Unilateral and bilateral contracts Article Example | Topics and Well Written Essays - 2250 words

slanted and bilateral contracts - Article ExampleUnilateral and bilateral contractsThe distinction between bilateral and unilateral contracts has been considered a fundamental principle of contract righteousness and essential to the order of the contractual system. The focus of this analysis is to critically evaluate the theoretical licit dichotomy between unilateral and bilateral contracts and consider the practical similarities between the two.If we firstly consider unilateral contracts, the concept of a unilateral contract is illustrated by reference to a classic contract law case of Carlil v Carbolic Smoke ball trammel4. In this case, the defendant was the owner of a medical substance and placed and advert in the Pall Mall Gazette bright to pay $100 to anyone who used the carbolic smoke ball for two weeks and who for a limited time later on contracted the flu virus. Mrs Carlil took the substance and contracted the flu virus and sued for the $100. Mrs Carlils claim succeed ed and on appeal, Carbolic Smoke Ball Limited argued that the advert did not constitute an offer but was rather an invitation to treat.The Court of Appeal jilted this argument and held that there was a legally enforceable contract. The advertisement constituted an offer to the whole ball and was capable of amounting to an offer of a unilateral contract without the requirement for toleration. Moreover, this decision was the first case to spotlight the requirement of intention to create legal relations. The Carlil decision had far reaching implications for contract law, with some commentators contestation that there is no difference between an invitation to treat and a contractual offer.invitation to treat and a contractual offer5. The law of contract stipulates three fundamental requirements for the formation of a legally enforceable contract namely offer, acceptance and consideration (it is important to note that contracting parties must have legal capacity to enter into a cont ract). Lord Wilberforce presiding in the case of New Zealand Shipping Co Limited v A M Satterhwaite, The Eurymedon6 asserted the rule for contract formation thusEnglish law having committed itself to a rather technical doctrine of contract, in application takes a practical approach. Into the market slots of offer, acceptance and consideration7. An offer in the context of contract law has been described as an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the offeree.8 The expression9 may take different forms and the intention element is an objective consideration and the case of metalworker v Hughes 10emphasised the relevant consideration as being a focus on how a levelheaded person would view the situation. Furthermore, the law distinguishes between an offer and an invitation to treat, which is not an offer but an indication of willingness to perform a co ntract11. For example, in the case of Gibson v Manchester City Council12, the words may be prepared to share constituted an invitation to treat and not a distinct offer.Moreover, an invitation to treat is an action inviting others to make an offer. Whereas an offer is itself binding, evaluate an invitation to treat is making an offer13. This is particularly evident in the construction industry where tender