Key Terms
Agreement
Mutual understanding between two or more parties about rights and duties. Contract: a legally enforceable agreement.
Breach
When a contract is broken. The injured party can seek damages — an amount that makes them whole again.
Private law
Contracts are binding only on the parties involved, not third parties. Parties may enter contracts for any purpose, on a
Exception
Courts have issued injunctions preventing entertainers from performing elsewhere until they honor their original contrac
Three required elements
Offer, acceptance, consideration.
Note
Some states add legality, capacity, and writing requirements — but these are better understood as defenses to contract f
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An offer no longer valid because a reasonable time to accept has expired. An expired coupon is the classic example.
Acceptance
An implied or express act showing willingness to be bound by the terms of an offer.
Express acceptance
Party states they accept. Implied acceptance: shown by conduct.
Counter-offer
If an acceptance changes, adds to, or modifies the terms of the offer, it is a counter-offer — not acceptance — and no c
Mutual assent
Also called "meeting of the minds." Both parties' intention to enter into a binding contract on the agreed terms. If par
Consideration
The bargained-for exchange of something of value that shows parties intend to be bound.
Two required elements
1. Something of value 2.
Legal detriment
Giving up a legal or property right. This is what "something of value" means in contract law.