The Contract Between Graham and Steve Intention to Create Legal Relation



The contract had fulfilled an element of a valid contract of an offer and acceptance. In order for a contract to be an enforceable contract, certain basic requirements must be present. There must be an agreement based upon genuine consent of the parties supported by consideration and made for a lawful object between competent parties. Graham requested Steve to supply him with 20 tonnes of Yorkshire stone which he accepted to deliver to him by 12th January. Graham accepted Steve’s delivery through fax which he wrote on 5th December. In order for a contract to be binding, the acceptance must be communicated and mere mental intention to accept it is not sufficient. Acceptance once made cannot be revoked. An offer may be revoked by an express notice before it is accepted. But acceptance cannot be revoked in under any circumstance. The moment a contract is concluded, it does not matter whether the acceptance is by word of mouth or in writing or even sent by post. Where the parties choose to post as a medium of entering into a contract, the following rules apply. An offer becomes effective when it reaches the offeree, not when the letter of offer is posted. The acceptance is considered complete immediately the letter of acceptance is posted, even if it is lost or destroyed in the post so that it never arrived. As long as the offeree can prove that he posted the letter of acceptance, the court will enforce the contract. However, there is an exception to the communication of acceptance.

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