Key Terms
Agreement
Mutual understanding between two or more parties about rights and duties. Contract: a legally enforceable agreement.
Definition
A written contract intended to be the final expression of the parties' agreement cannot be modified, varied, or contradi
Lapsed offer
No longer valid because a reasonable time to accept has expired. An expired coupon is the classic example.
Express acceptance
Stated verbally or in writing. Implied acceptance: shown by conduct (handing over payment without speaking).
Counteroffer
If acceptance changes, adds, or modifies terms, it is a counteroffer - no contract is formed. The original offeror may a
Mutual assent (meeting of the minds)
Both parties intend to be bound by the agreed terms. No meeting of the minds = no contract.
Two required elements
1. Something of value (a legal detriment) 2.
Legal detriment
Giving up a legal or property right.
Five elements to establish promissory estoppel
1. A definite promise 2.
Bilateral
Both parties make a promise of performance. Also called mutual or reciprocal.
Unilateral
One party makes a promise that can only be accepted by performance - not by promising to perform. Example: reward offer
Express contract
Terms spelled out directly in words, oral or written. Clear intent to be legally bound.
Implied contract
Inferred from conduct of the parties, no formal discussion of terms required.
Valid
Fully enforceable, reflects parties' intent.
Unenforceable
Parties intended a valid bargain but the court cannot enforce it for a legal reason (e.g., statute of limitations has ru