An offer is a promise, which is capable of acceptance, to be bound on particular terms. The offer sets out the terms upon which the offeror is willing to enter into contractual relations with the offeree. In order to form a binding agreement, the acceptance must correspond with the terms of the offer. The general rule is that acceptance must be communicated to the offeror. Exceptions are where – the offeror has waived the right to receive communication, or acceptance is through the postal service.

The law courts will only enforce those agreements which the parties intended to have legal effect. In commercial and business agreements there is a rebuttal presumption that the parties intend to create legal relations. However, agreements between employers and trade unions, although commercial in nature, are deemed as gentlemen agreements, and are presumed not to give rise to legal relations.

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