The moment of conclusion of a contract : contracts by correspondence

Abstract

Contracts "inter absentes" are a common feature of both commercial and civil transactions. Social interaction today demands that agreements should not be entered in to only between two persons physically present and consenting but also between persons situate at great distances from each other. Contracts are perfected by correspondence namely with the exchange of written proposals and acceptances, telephone messages, tele graphic transmissions and related means of communications. As regards the commercial sphere where this form of contract making is more commonly· used contracts by correspondence are the order of the day. Nevertheless these contracts are not restricted to the commercial field. A person putting an advert in a paper inviting offers for a battered baby-grand piano is also in a sense commencing the formation of a contract inter absentes. It shall be attempted primarily to examine the two constituent elements of the formation of a contract namely the offer and the acceptance in the light of the situation prevailing where the two major contracting parties are not physical present. It shall also be attempted to illustrate the legal theories put forward by text writers attempting to explain the legal theories behind the formation of these contracts.