Constitution of Contracts: Key Concepts of Agreement in Principle, Declarations of Intention, and Proposals

Description

This Skill Bit talks about an agreement in principle, which outlines general terms for potential contract formation but does not create legal obligations until a formal contract is finalized. A declaration of intention signals a party’s plan to enter a contract later, lacking key elements like offer and acceptance, and thus no legal obligations arise from it alone. A proposal becomes an offer when it meets acceptance criteria. Courts evaluate factors such as language, context, and intent to determine whether a proposal qualifies as an offer capable of forming a contract.

Duration approx. 5 Min.

Tier: advanced