[ Lord Denning ]In a shorter term, it could be said that, an Agreement is made by the coincidence of a valid offer and a valid acceptance. In other words, a contractual agreement is said to exist while a valid offer is being followed by a valid acceptance. In order to pinpoint whether a contract is formed or not, we have to observe whether an offer has been made by one party and that offer has been accepted by the other party.Even though, it appears really simple and easy but in reality, it could be much more complicated than it looks .
In the case of, Butler Machine Tool Co vs. Ex-Cell-O Corporation [1979] 1 WLR 401 Lord Denning gave an important suggestion that, ‘the judge should provide a decision of the existence of a contract by examining the evidence not by following the strict principle of offer and acceptance’. Though many judges supported the logic provided by Lord Denning ,however, practically, it became very obvious that the honorable judges like to follow the traditional test of offer and acceptance and apply the test in relevant cases.
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