The formation of a contract is an agreement between an individual, a company or any other entity made between two parties and an exchange of something given or done by one of the parties occurs. There are 2 types of contract, unilateral contract and bilateral contract. The first is the unilateral contract that involves an action taken by only one person or group and allows only one person to make a promise or agreement. The second is the bilateral contract which is an agreement between at least two people or groups. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay An effective contract should include 4 components which are offer, acceptance, consideration and intention to make a legal commitment. When the offer and acceptance coincide, the contract is binding. The first element is an offering which is a proposal by the offeree or the recipient to give or do something. When an offer is accepted, there is said to be an agreement. The proposal is usually made under certain terms and follows a negotiation process. Furthermore, it must be clear and be communicated in writing, orally or through behavior. An offering can be made to a particular person, to a group or to the entire world. The offer lapses and is not susceptible to acceptance when the revocation of the withdrawal by the offeror, the refusal by the recipient, the expiration of the term or death occurs. After receiving the offer, the second element is acceptance, defined as an absolute and unconditional assent to all the terms of the offer. It can be expressed in writing, orally, or implicit in behavior. If there is a change in the offer, it will become a counter offer. An acceptance means communication by both parties and once final acceptance is reached, it will become an enforceable contract. The third essential element of contract formation is consideration which refers to everything that is exchanged in exchange between the parties because the court will not question its adequacy, so one party must be responsible by giving something of value to the other part, although it need not be money. The final element is the intention to create legal relationships, defined as the intention to enter into a legally binding contract. Therefore, parties signing a contract must know, understand that they are entering into a legal agreement that cannot be broken. If there was no intention, the contract would not be enforceable and the parties could not sue each other. A void agreement will occur if both parties do not agree with the contract. Therefore, both contracting parties must have a clear mind to enter into a serious contract. Discuss the relevant legal principles in relation to the case study above. Apply legal principles to the facts and advise Henry on his legal position regarding the following: (i) Advertisement in the online site, CanSellAll On 2 May, Henry advertised in the online site, called CanSellAll “The smartphone will be sold to the first buyer who offers me $388. The sale price is only valid for one week. Whatsapp: 12345678”. An advertisement can be an offer or an invitation to treat. However, it will be based on the intentions of the parties. Henry simply invited people with statements posted on the online site. It also only sells one smartphone and this indicates that it is not a smartphone distributor and therefore there was no promise. Therefore, it is considered an invitation to treat as mentioned in Partridge v Crittenden (1968). Partridge posted his ad to sell his birds, but the ad itself did not contain any offers to sell birds. The courts have held that the ads.