There are several instances of conflict in a marketplace. Over time the law of contract was established to lay down a set of rules for all parties to a business transaction.


A ​contractis a legally binding agreement between two or more parties and if necessary the parties may resort to the courts to decide.

A contract needs to have a range of elements present and reaching agreement is the initial step.



Agreement = Offer + Acceptance

An Offer​ is a proposal to give or to do something and when accepted there is said to be agreement. e..g. A bid on a house at an auction.

It must be clear and may be implied by conduct e.g. taking goods to the checkout.


Acceptance is a positive unqualified assent to all terms of the offer e.g. The vendor is happy to sell the house.


Goods on display are merely an ​invitation to the buyer to make an offer to buy but are not necessarily an offer to sell. This concept is called ​“Invitation to treat”

In the event of the seller refusing the offer to buy then we do not have acceptance or agreement

A potential contract would fall at the first hurdle if agreement is not reached.


Very specific answer needed