Unit 1: Contracts

Contract

A legally enforced agreement between two or more parties, central to transportation for tasks like shipping.

Valid Contract

An agreement that includes offer, acceptance, and consideration, making it legally enforceable.

Transportation Contract

An agreement where parties (e.g., shipper and trucker) exchange tasks, such as moving goods for payment.

Simple Contract Example

An email exchange agreeing to transport goods on a certain date for a specific price can form a valid contract.

Offer

A proposal made by one party to complete a task under specific conditions (e.g., move 20 pallets from Boston to Baltimore for $1,800).

Acceptance

The formal agreement to the offer, made verbally or in writing; essential to forming a contract.

Counteroffer

A new offer made in response to an original offer, often during a negotiation.

Negotiation

The process of exchanging offers and counteroffers until both parties reach a “meeting of the minds.”

Meeting of the Minds

Mutual agreement between parties on the terms of the contract.

Consideration

Something of value exchanged between parties in a contract, such as $1,800 in exchange for transporting goods.

Legal Validity of Contracts

Established through the presence of offer, acceptance, and consideration.

UCC on Acceptance

The Uniform Commercial Code allows acceptances that add terms to become part of the contract unless objected to in time.