A contract to be legally binding has to have 4 main components. An offer, and an acceptance of that offer, with consideration provided by each party, along with having the intention to create legal relations.
An offer that is made has to be accepted in letter and spirit for a contract to be legally binding. If the offer is not accepted as it is, and instead a new term is added or the previous one edited, then that will amount to a counter offer, which then, the initial offeror has to accept or reject.
The offer and acceptance can be verbal as well as oral, subject to certain terms and conditions. For example, the acceptance must be conveyed to the offeror and a failure to do so will not make a legally binding contract. Also, the burden of conveying the acceptance lies on the person accepting the offer, if he has done that to the best of his abilities but even then the acceptance was not conveyed, then a contract can be enforced by the courts.
If all the terms of acceptance and offer have been met, then consideration also needs to be given in order to make the contract legally binding on both the parties. The consideration does not, necessarily, have to be of valuable. It can be as good as a piece of wrapper, which can be seen in the case of Chappel and Co Ltd vs Nestle.
If you require further information on the topic, you may want to contact the following law firms dealing in Contract law cases in London
Visit Gilham Solicitor’s website.
Visit Nabaro’s website.
Visit Mathew Arnold & Baldwin’s website.