Law of Contract: Consensus

Vocabulary flashcards summarizing key terms and definitions related to contract law.

Definition of a contract

An agreement entered into by two or more persons with the intention of creating a legal obligation.

Bilateral contract

A contract that involves promises or undertakings by both parties.

Reciprocity in contracts

Most contracts entail a bargain, enforceable only if supported by consideration.

Consideration

Something of value promised in return within a contract.

Principle of contractual freedom

Parties can agree to any terms that are possible and lawful.

True consensus

Consensus based on the explicit or tacit agreement of all parties.

Assumed consensus

Consensus mainly based on terms implied by the parties.

By operation of law

Consensus that is established through legislation.

Offer

A declaration of intent by a prospective party containing a proposal to bring a legal obligation into being.

Acceptance

An unqualified declaration of intent by the offeree approving the offer without reservation.

Termination of an offer

Occurs when the offeree rejects, the offeror revokes, either party dies, or the prescribed time expires.

Public offer

An offer directed at undefined persons, typically an advertisement that constitutes a legal offer when it promises a reward.