Public sector contract creation

A contract is a legally binding agreement that grants rights and creates duties. It may be oral, written, partly oral and partly written, or inferred entirely from the conduct of the parties. This subtopic is aimed at public sector lawyers dealing with contract matters, beginning with the basic elements required for the creation of a valid and enforceable contract, moving to further considerations relating to contract formation such as:

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certainty
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underlying questions of capacity and authority
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structure and formation of written contracts

The guidance in this subtopic is intended to provide an overview of the main issues relevant to the creation of enforceable contracts. The full range of guidance and materials on commercial contracts is available from Lexis+® UK Commercial.

Basic elements

Four key elements are required for effective creation of a contract:

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offer—an expression of willingness to contract on specified terms, which is intended to become binding as soon as it is accepted
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acceptance—a final and unqualified expression of assent, by words or by conduct, to the terms of the offer
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consideration—being something of value, which one party gives

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