The issue of law is whether agreement to be legally bound exists, to form a valid agreement for the formation of a legally enforceable contract between Jasmine and Patrick.
For a legally enforceable contract to be formed, there are three essential elements that need to be present. These elements are intention to be legally bound, consideration and agreement Lambris, 2017, pg 71. Agreement is the element here which needs further discussion.
An agreement means a consensus where two parties understand what the necessary terms are needed for a contract. For an agreement to be present, the item being bought/ sold must be mentioned, the price payable must be mentioned and whether there was an offer or acceptance made. Offer is a clear indication of the terms upon which a person is prepared to be bound, and acceptance is agreeing to receiving the terms offered.
One of the first requirement of an offer are an offer must be sufficiently complete. This means that the offer must outline what is being offered and the price the offer is made at.
The requirement of an offer must be ‘Promissory’.