1) Offer and acceptance require an offeror to express willingness to contract on certain terms to an offeree, and the offeree must indicate acceptance of those terms. Intention to create legal relations is also required to form a legally binding contract. 2) An offer is a statement of terms the offeror is willing to be bound by, communicated to the offeree. An invitation to treat is not an offer but a willingness to negotiate. Acceptance is a promise or act indicating willingness to be bound by an offer's terms. 3) Intention to create legal relations means intending to enter a legally binding agreement, with understanding of legal consequences. Without this intention, a contract would not be

1. INTENTION TO CREATE LEGAL RELATIONS
PRESENTED BY
HARRISON EFE JAMU AIMIYEKAGBON
LECTURERS NAME
MS JANE YAP

2. OFFER AND ACCEPTANCE
Offer and acceptance are elements required for the formation of a legally binding contract: the
expression of an offer to contract on certain terms by one person (the "offeror") to another
person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The
other elements traditionally required for a legally binding contract are (i) consideration and (ii)
an intention to create legal relations.
offer
an offer as "an expression of willingness to contract on certain terms, made with the intention
that it shall become binding as soon as it is accepted by the person to whom it is addressed",
the "offeree". An offer is a statement of the terms on which the offeror is willing to be bound. It is
the present contractual intent to be bound by a contract with definite and certain terms
communicated to the offeree. A unilateral contract can be contrasted with a bilateral contract,
where there is an exchange of promises between two parties.
invitation to treat
An invitation to treat is not an offer, but an indication of a person's willingness to negotiate a
contract. It's a pre-offer communication.
Acceptance
A promise or act on the part of an offeree indicating a willingness to be bound by
the terms and conditions contained in an offer

3. Intention to create legal relations is defined as an intention to enter a legally binding
agreement or contract. Intention to create legal relations is one of the necessary
elements in formation of a contract and also consists of readiness of a party to accept
the legal sequences of having entered into an agreement.
There are a few concept of intention to create legal relations. Intention to create legal
relations also means an intention to be serious about agreement significance:
a) The contracting parties mind will be obvious to enter a serious contract
When two parties decided to enter in the environment of a contract, their mind will
understand the contents of the contracts.
b) If there is no intention to create legal relations the contract would not be enforceable,
legal and binding
if there is no intention to create a legal relation, the contract can be assumed as not
legal because there is no intention to create legal relations at the beginning there by not
making contracting parties to be legally binding.
d) Without intention to create legal relations the contract may become a mere promise
INTENTION TO CREATE LEGAL RELATIONS

4. CONSIDERATION
consideration may involve right, interest, profit or benefit of one party which come from any
forbearance, detriment, loss or responsibilities occurred and after being experience of the promise.
Consideration includes of executory, executed except for past.
Case study:
Based on the case studies, the situation of consideration can be found when Mr. John who was
walking around in SOGO Shopping complex get interested of the dining set in Comfortable
Furniture Sdn Bhd furniture shop. Other than that, the second situation of consideration incurred
when Mr. John was very happy as he succeed in bargained the prices of the 6 seated dining set
worth RM 1,000. Furthermore, the third situation of consideration can be viewed when Mr. John
would like to pay RM 100 for the dining set deposit due to Mr. John did not have enough money at
that time.
RULES IN CONSIDERATION
i. Consideration can be past, executory and executed
Consideration provided for a promise must be done in relation to that promise. If something has
already been completed and the promise comes after, this is a past consideration. Executory
consideration consists of two promises and executed consideration consists of one promise
followed by some action.
ii. Consideration must move from the promisor
Consideration must be provided by promise in order for her or him to be able to enforce promise.
Thus, party who has not provided consideration for promise cannot enforce promise and it is only
the party who has “paid” for promise who can enforce it.
iii. Consideration need not to be adequate but must be sufficient
In order to ensure the consideration to be sufficient, the consideration should have some value to
the other party. It is because, the courts will not concern on the market price topic because they
believe it will interfere the liberty of a contract.

5. REFERENCES
1. British Car Auctions Ltd v. Wright [1972] 1 W.L.R. 1519; see also the British Sale
of Goods Act 1979 s.57(2).
2. Austen-Baker, "Gilmore and the Strange Case of the Failure of Contract to
Die After All" (2000) 18 Journal of Contract Law 1.
3. Lopez v. Charles Schwab & Co., Inc., 118 Cal. App. 4th 1224 (2004).
4. http://en.wikipedia.org/wiki/Offer_and_acceptance
5. http://www.lawteacher.net/contract-law/essays/intention-to-create-legal-
relations.php