Acceptance is done by the final and unqualified approval of an offer, the acceptance of the precise terms of the offer without modification. The parties must have the intention that the offer and acceptance be legally binding on them: the “contractual will”. In the United Kingdom, the courts decide whether a clause is a condition or a guarantee; For example, an actress`s obligation to organize the opening night of a theatrical production is a condition,[70] but a singer`s obligation to study may be a guarantee. [71] The statute may also declare a clause or type of clause as a condition or guarantee; For example, the Goods Act 1979 s15A[72] provides that title, description, quality and models are general conditions. The United Kingdom also developed the concept of an “intermediate” term (also called Innomingenannt), first coined in Hong Kong Fir Shipping Co Ltd against Kawasaki Kisen Kaisha Ltd [1962]. As a general rule, courts are not in a position to balance the “proportionality” of the consideration, provided that the consideration is determined as “sufficient”, the adequacy being defined as an exercise in legal review, while “adequacy” is subjective fairness or equivalence. For example, consent to the sale of a car for a pfennig may constitute a binding contract[32] (although the transaction is an attempt to avoid taxes, it is treated by the tax authorities as if a market price had been paid). [33] Parties may do so for tax purposes and attempt to conceal donations in the form of contracts. This is called the peppercorn rule, but in some legal systems, the penny may be an insufficient nominal consideration. An exception to the adequacy rule is money, a debt that must always pay in full for “compliance and satisfaction.” [34] [35] [36] [37] If the language used by the parties to reach an agreement is so vague and imprecise that a reliable interpretation of contractual intentions is prevented, there is likely to be no contract. An unsigned written contract may be binding, although a court will consider all the circumstances before concluding that the parties wanted to be linked.

(The formation of a contract – and not just an agreement – in the strict sense requires the existence of the three other elements mentioned above: (1) Reflection, (2) with the intention of creating a legally binding contract and (3) contractual capacity) Some arbitration clauses are not applicable and, in other cases, an arbitration procedure may not be sufficient to settle a dispute. For example, disputes over the validity of registered intellectual property rights may be settled by a public body within the national registration system. [123] In the case of matters of significant public interest that go beyond the narrow interests of the parties to the agreement, such as allegations that a party breached a contract by committing unlawful anti-competitive conduct or committing civil rights violations, a court may find that the parties may assert one or all of their rights before contracting out. [124] In Anglo-American common law, the formation of a contract generally requires a related offer, acceptance, consideration and mutual intent.