Discuss the Requirement of Consensus in the Formation of Contract

question 130

Essay

Discuss the requirement of consensus in the formation of contract. In your answer, consider the role of offer and acceptance and also look at the degree of understanding required between the parties.

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Definitions:

Economic Profits

The difference between total revenue and the total costs (both explicit and implicit costs) of a company, indicating the surplus generated from business activities.

Savings Account

An account for holding deposits at a bank or another financial entity, ensuring the safety of the principal amount while offering a slight interest rate.

Annual Interest

The amount of interest due over the course of a year on borrowed capital or invested funds.

Accounting Profits

The difference between a company's total revenue and its explicit costs, not including opportunity costs.