Contract Negotiations and Formation
It is action of two or more parties consulting about a possible arrangement of partnership, discussing points of a potential partnership arrangement. Their goal is to make an agreement to be made that is beneficial to all parties involved. Talks may go on between the parties until all points have been agreed upon and come to a mutual agreement. The final aim is an agreement that is both fair and equitable to each party.
Negotiation contracts is the deliberation which takes place between the parties touching a proposed agreement that which transpires in the negotiation makes no part of the agreement, unless introduced into it. It is a general rule that no evidence can be given to add, diminish, contradict or alter a written instrument.
Every contract should have:
- 1. Offer;
- 2. Acceptance;
- 3. Consideration (although note the position in relation to Scotland below); and
- 4. Intention to create legal relations.
'Acceptance' of an offer occurs when there is an unqualified acceptance of all the offered terms. However, this is unusual and there will normally be a period of negotiation. New terms and conditions introduced through negotiation in effect amount to a series of counter offers to the original offer, cancelling the terms of the original offer. read more...
A contract for the sale of goods can be made in any manner that shows agreement between the buyer and seller. A contract may be made orally or in writing or through any other conduct by both parties that acknowledges the existence of a contract.
To form a contract, one of the parties must make an offer, the other party must accept the offer, and consideration, or something of value, must be exchanged. An offer may be revoked without any loss to the offeror if the revocation is made before the other party accepts the offer and gives consideration. However, an offer may not be revoked for up to 90 days if it is accompanied by an assurance that the offer will be kept open; made by a merchant; and in writing signed by the offering merchant (U.C.C. § 2-205). read more...