Key Terms
Agreement
Mutual understanding; not necessarily enforceable.
Offer
A conditional promise to do or refrain from doing something now or in the future; willingness to enter into a contract.
Lapsed offer
An offer no longer valid because a reasonable time to accept has expired. Example: an expired coupon.
Acceptance
Implied or express act showing willingness to be bound.
Express acceptance
Stated directly ("I accept"). Implied acceptance: based on conduct.
Counter-offer
If an acceptance changes, adds, or modifies any terms of the offer, it is a counter-offer — not acceptance. No contract
Mutual assent (meeting of the minds)
Both parties intend to enter into a binding contract on the terms they agreed upon. If parties don't agree on essential
Consideration
The bargained-for exchange of something of value that shows the parties intend to be bound.
Legal detriment
Giving up a legal or property right. This is what "something of value" means in contract law.
Promissory estoppel
A promise made without consideration may still be enforced to prevent injustice when the promisor should have reasonably
Bilateral contract
Both parties make a promise of performance. Also called mutual or reciprocal contracts.
Unilateral contract
One party makes a promise; the other party accepts only by performing. Promising to provide information is not acceptanc
Express contract
Stated in words, oral or written. Terms are spelled out directly.
Implied contract
Inferred from the parties' actions. No discussion of terms took place, but conduct makes agreement clear.
Quasi-contract
Not a contract at all. It is a judicial remedy imposed by a court to prevent unjust enrichment of one person at another'