3.5 Terms of the Contract

Contracts in practice are never as simple and neat as the contracts that are explained in legal textbooks. Legal texts leave the reader with the impression that the process begins simply with an invitation to treat, followed by an offer and a corresponding acceptance. In practice, however, there may be lengthy negotiations and exchanges prior to the formation of the contract. Some of these exchanges may be insignificant; others may be highly significant. It is important to determine which of the statements form a part of the contract and which do not.