Basic Contract Law for Building and Construction

About this course.

A contract is a legally binding agreement, and for one to exist the law generally looks for several elements together: an offer, acceptance of that offer, consideration (something of value exchanged), an intention to create legal relations, and terms that are sufficiently certain. If these elements are present, the parties have made a contract the law will recognise and enforce; if a key element is missing, there may be no binding contract at all, or only an unenforceable arrangement. Understanding these building blocks helps you recognise when you have actually committed yourself — which in construction can happen more easily than people expect. This module explains the general principles only and is not legal advice.

The first element is the offer. An offer is a clear proposal to do something on stated terms, made with the intention that it will become binding if the other party accepts it. In construction, a builder's quotation or tender for defined work at a stated price is a common example of an offer. It is important to distinguish an offer from an "invitation to treat" — a mere invitation to make offers or to negotiate, such as advertising availability or inviting quotes — which is not itself something that can simply be "accepted" into a contract. Whether a particular communication is a binding offer or just part of the negotiation depends on its wording and the circumstances, and this distinction is a frequent source of confusion.