Contract Law

Contract Law

deals with making and following through on agreements between people or businesses. It covers how contracts are made, how they are carried out, and what happens if someone breaks the agreement.

Contract

A binding agreement between two or more parties.

Legally enforceable contracts must have

Offer

Acceptance

Consideration

Capacity

Intention

Lawful Purpose

Party

A person, business, or group that has legally agreed to follow the rules of a contract.

Offeror

The person or group who first offers the terms of a contract.

Offeree

The person or group who receives a contract offer and can choose to accept it, reject it, or suggest new terms.

Consideration

Something valuable, like money, goods, services, or a promise, that is given or exchanged between people in a contract.

Capacity

Whether a person is legally able to understand and take part in a contract. (must be mentally competent)

Intention

All people involved in the contract know what they’re doing and truly want to make a legal agreement.

Lawful Purpose

Reason or goal of something—like a contract—is legal and allowed by law. It can’t be for something illegal.

Bilateral Contracts

A contract where both parties make promises to each other.

Unilateral Contracts

Formal Contract

A contract that must follow special rules or use a specific form to be legal.

Express Contract

A contract where the terms are clearly stated out loud or in writing.

Implied Contract

A contract created by actions or behavior, not words.

Informal Contract

A contract that doesn’t need a special form or rules to be valid.

Unilateral Contract

A contract where one party promises something, and the other party agrees by doing an action.