How does an offer become legally binding?

<h1>How does an offer become legally binding?</h1>

<p align=right>by Seraphina Tan</p>

<div align=justify>Do you know what constitutes a contract? Do you know that an offer can also be binding even if it was never written on paper? Do you know that a contract need not be in writing? There are a number of terms which you will need to understand: 1. What is an offer? An offer is an expression made by one individual to another. It can be to another individual, a group of individuals or to the world at large. It offers the promise of being bound as longer as the specified terms are accepted. It can be oral, written or via conduct. 2. What is an acceptance? An acceptance takes place when there is a final and unqualified express of agreement to the terms of the offer. Acceptance must be communicated to the offeror. Unless Postal Acceptance Rule apply, acceptance must be made either through fax, telex or face to face. In the case of acceptance by post, an acceptance of offer is made once the letter is posted, even if the letter was lost in the mail. 3. What is a contract? A contract occurs when an offer is accepted. And unless required by law, a contract need not be in writing. All contracts are agreement giving rise to obligations which are enforced or recognized at law. However, not all agreements are contracts as a valid contract must possess all the following element; offer, acceptance, intention to create legal relations, capacity and consideration. However, there are 4 types of contracts that are considered illegal. - Gaming & wagering contracts - Contracts contrary to public policy - Contracts illegal in performance - Contracts in restraint of trade (for sale of business and employment contracts) During the course of negotiating the contract, many statements would have been made. Some would be legally binding whilst others are not. There are a number of factors which could potentially legally bind a statement. 1. The closer the statement was made to the conclusion of the contract, the more likely it is to be binding. 2. If the maker of the statement has greater knowledge concerning the statement compared to the other party, it is more likely the statement is binding. 3. The greater the emphasis placed by a party to the contract, the more likely the statement is binding 4. If an oral statement is later set down in writing, then it is more likely to have become contractually binding 5. If the maker of the statement invited the other party to verify the truth of the statement made (e.g. “Why don’t you get an independent party to verify if you don’t believe me”), then the statement is more likely to be a representation and may give rise to a course of action in misrepresentation if false. Therefore, do be mindful about how you put things across to the parents of your daycare children because you could be legally bound to fulfill it, whether or not it has been written on paper. </div>

<p align=center>Article source: <a href="http://www.ArticlePros.com/business/entrepreneurs/article-91139.html">ArticlePros.com</a></p>
 
<table align=center width=550 cellspacing=1 bgcolor=silver cellpadding=5>
<tr bgcolor=antiquewhite>
	<td>
		<p align=center><b>About the author</b></p>
		<p align=justify>For more essential information and resources on starting a successful daycare business, please visit <a href="http://www.setupadaycare.com/" target="_top">www.setupadaycare.com</a><br />
</p>
		<p align=left><a href="http://www.setupadaycare.com" target="_blank" title="will open in new window" class=blue>http://www.setupadaycare.com</a></p>				<p align=center><input type=button class=asubm value="Other articles by Seraphina Tan" onclick="document.location='http://www.ArticlePros.com/author.php?Seraphina Tan'" style="height:20px;cursor:hand"></p>
	</td>
</tr>
</table>