A contract between two parties is essentially terms of acceptance and offer, or just the other way round. Here one party makes an offer while the other accepts it thereby binding them by a contract. This is an agreement which is documented, and invites litigation is cases of violation. Documentation is to be done carefully and clearly, as even slight variations could imply different implications. In contracts it is important to distinguish between €invitation to treat' and €offer'. Difference also exists between unilateral and bilateral contracts. These distinction need to be clearly specified, in the absence of which contract disputes are bound to arise.

It needs to be understood that offer is a binding between two parties where there is a condition of acceptance. An offer can never be made without it being accepted. In other words, an offer only becomes valid only on its acceptance. Offer is always a written statement and is never verbal. An €invitation to treat' is never a legal binding and cannot be taken up in a court of law. Gift vouchers, and declared sales discounts are typical examples of offers made by selling agencies to consumers. Advertisements are examples of €invitation to treat', where essentially an end user is invited to certain goods and services without any €offers' being made. €Treats' might or might not be accepted, but an €offer' is mandatorily accepted.

Similarly, goods displayed in shop windows are also another form of €invitation of treat'. When a consumer intends to purchase these goods he makes an offer to the shop keeper who accepts it by selling it. In a larger scale, tenders floated by companies or government departments are €invitations to treat' which when accepted become €offers'. It is completely discretionary on the part of suppliers to accept these €invitations to treat' or tenders. However to participate in these tenders, you need to submit an offer which forms the binding between suppliers and buyer. Suppliers on submitting their offer as per tender conditions become legally bound to honour the same. Any violation on their part could invite legal action from the buyers.

This type of tendering where documentation is done as per terms and conditions of a buyer is an example of unilateral contract. There are certain contracts where both parties involved put in their own terms and conditions. This offer thus created is an bilateral agreement which both have to honour.

In practice, contract disputes are caused in contracts as terms and conditions are either not clearly specified, or there are scopes of ambiguity. Often parties take advantage of loopholes in an offer leading to disputes. The initial step to avoid such disputes is to get an offer or contract documented by law professionals. They are abreast of latest amendments and are able to create perfect documentation for a contract. To avoid any kind of disputes and mess always insist on trusted professionals.