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

Unilateral and bilateral consumes - Article ExampleUnilateral and bilateral contractsThe distinction amidst bilateral and unilateral contracts has been considered a fundamental principle of contract law and essential to the order of the contractual system. The emphasis of this analysis is to critically evaluate the theoretic legal 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 Limited4. In this case, the defendant was the proprietor of a medical checkup substance and placed and make in the Pall Mall Gazette promising to pay $100 to anyone who used the carbolic smoke ball for two weeks and who for a limited time after 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 rejected this argument and held that there was a legally enforceable contract. The advertisement comprise an offer to the whole world and was capable of amounting to an offer of a unilateral contract without the requirement for acceptance. Moreover, this decision was the first case to highlight the requirement of plan to create legal relations. The Carlil decision had far reaching implications for contract law, with some commentators arguing 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 viz. offer, acceptance and consideration (it is important to note that contracting parties must have legal capacity to enter into a contract). Lord Wi lberforce presiding in the case of wise 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 whitethorn take different forms and the intention element is an objective consideration and the case of Smith v Hughes 10emphasised the relevant consideration as being a focus on how a reasonable 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 negotiate a contract11. Fo r example, in the case of Gibson v Manchester City Council12, the words may be prepared to sell constituted an invitation to treat and not a distinct offer.Moreover, an invitation to treat is an action at law inviting others to make an offer. Whereas an offer is itself binding, accepting an invitation to treat is making an offer13. This is particularly evident in the construction industry where tender