Contract

Agreement between parties with mutual obligations
Broad category of agreements

Economic ordering
Consensual exchange

Gentlemen's agreement (informal)

Relies upon honor for fulfillment
- Written communication
- Oral communication
- Unspoken (etiquette)

Legal agreement (formal)

Common law elements

Mutual assent

Offer and acceptance
Offer is met with an acceptance, unqualified and non-variance of terms (mirror image)
Vary the terms of an offer (rejection and counter-offer)

Party makes an offer for an arrangement (promissor)
- Real and unconditional
Party accepts an offer for an arrangement (promisee)

Parties must have capacity to contract
Purpose of the contract must be lawful
Form of the contract must be legal
Parties must intend to create a legal relationship
Parties must consent

Concurrence of wills
- Consensus ad idem
- "Meeting of the minds"

Certain and Complete
- Oral communication
- Written communication
- Implied circumstances

Consideration

Value exchange

Exchange relationship
- Given by a promissor (making promise)
- Value recieved by a promisee (accepting promise)
Must be sufficient (All that must be shown is what the promissor actually wanted)
Do not weight the adequacy

Past consideration are not valid
Preexisting duty are not considerations
Illusory promise (no obligation to keep) are not considerations

Legal detriment
- Do something
- Refrain from doing something
Bargain
- Agreement to exchange goods at a price
- Wants, usually a legal detriment

Contractual terms

Provisions forming part of a contract

Contractual obligations

Conditions
Warranties

Status as a term
- Statements
- nature of a statement

Implied terms
- in fact
- in law

Good faith

Uniform Commercial Code (UCC)

"The Code"
Law of sales and other commercial transactions

External articles

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License