TABLE OF CONTENTS In the course of his career the plant engineer will be a party to a contract. His employment is a contract between himself and his employer unless he is self-employed. What is a contract? A contract is an agreement between at least two parties to a matter. The important aspect is that the agreement is to the same thing. This is known as consensus ad idem, and follows an offer which is accepted. An invitation to tender is not an offer, the offer being made by the tenderer in submitting his tender. English law says that certain essential elements need to be met before a contract can be enforceable, and these are:
Agreement - as mentioned above;
Intention - The parties must intend to create legal relations;
Consideration - This is essential in simple contracts, which most are. An example is that A makes a contract to purchase a car from B at a cost of 10 000. In paying the 10 000 A is fulfilling the essentials of consideration. A contract would not exist if B gave his car to A because there would be no consideration.
The law of contract is exceedingly complicated, and the pitfalls experienced by engineers keep a substantial number of solicitors, barristers and...
