Drafting Commercial Contracts

Back to basics

In this article we go back to basics, looking at the essential principles behind drafting commercial contracts for the benefit of anyone who wants, or needs, an introduction or a refresher. But first, lets take a moment to reflect on some of the principles that underpin contract law.

Assuming that all parties can claim an appropriate legal capacity, there are four essential requirements for a contract to be formed: offer, acceptance, consideration and the intention to create legal relations. Once these four principles have been satisfied a contract has been made. The first three are always matters of fact; but the fourth is not.