Law of Contract Key Definitions

Contract

An agreement that courts will enforce

Offeror

Party who makes an offer to form a contract

Offeree

Party to whom an offer is made

Offer

Proposal by an offeror to do something, provided the offeree does something in return

Revocation

Withdrawing an offer before it is accepted

Counter-Offer

Offerees response to an offer which modifies it

Option

Separate contract arising when the offeree gives the offeror something of value in return for a promise to leave an offer open

Acceptance

Occurs when a party to whom an offer has been made agrees to the proposal

Mirror Image rule

A rule that requires that the terms in the acceptance must exactly match the terms contained in the counter offer

Unilateral Offers

Offeror promises something in return for the offeree’s performance and indicates that this performance is the way acceptance must be made

Bilateral Contracts

Offeree can accept the offer by giving a promise to the offeror instead of performing the contracted for act

Gift

The transfer of ownership without receiving anything in return

Consideration

That which is given or received by both parties in a contract

Forbearance

Refraining from doing what one has a right not to do

Promissory Estoppel

Promise is enforced even though no consideration is given for it