Key Terms
Agreement
A mutual understanding between two or more parties about their rights and duties toward each other.
Contract
A legally enforceable agreement between two or more parties.
Private law
Contracts create binding rules for the parties involved — no one else. Parties can contract for whatever they want, even
Three required elements (all states agree)
1. Offer 2.
Definition
Money paid by one party to another to discharge a legal liability.
Lapsed offer
No longer valid because a reasonable time to accept has expired. Example: an expired coupon.
Express acceptance
Stated verbally or in writing. Implied acceptance: shown through conduct.
Two required elements
1. Something of value 2.
Legal detriment
Giving up a legal or property right. This is what the "something of value" must constitute.
Bilateral contract
Both parties make a promise of performance. Also called mutual or reciprocal contracts.
Unilateral contract
One party makes a promise that the other party accepts only by performing — not by promising. Example: a reward offer.
Express contract
Terms spelled out directly, orally or in writing. Parties clearly intend a legally enforceable agreement.
Implied contract
Inferred from parties' conduct; no explicit discussion of terms required. Example: ordering a sandwich at a deli — the p
Example
A roofer delays repair beyond the contract deadline; retailer stays closed an extra week. Lost sales = consequential dam
Void
Illegal contracts, contracts lacking essential elements — neither party can enforce. Voidable: one party (e.g., a minor)