Contract Law

• Contract: An agreement between two parties creating mutual obligations that are enforceable by law

• For a contract to be legally enforceable, it must have consideration (offer and acceptance), capacity (signer must be of legal age and sound mind), and legality

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Key Terms

• Acceptance: To accept an offer. Acceptance can be judged and give explicitly and implicitly, To form a binding contract, acceptance should be relayed in a manner authorized, requested, or at least reasonably expected by the offeror.

  
  

• Assent: An intentional approval of known facts that are offered by another for acceptance.

  
  

• Consideration: Something bargained for and received by a promisor. Common types of consideration include real or personal property, some act, or a forbearance.

  
  

• Damages: A remedy in the form of monetary compensation to the harmed party

  
  

• Expectation Damages: Damages awarded to an injured party in a breach of contract that are intended to put the injured party in as good of a position as if the contract was upheld.

  
  

• Mutual Assent: Agreement by both parties to a contract. Must be objectively proven.

  
  

• Offer: A promise to do or refrain from doing something in exchange for something else. An offer must be clear, definite, and made with the intention to create a binding offer.

  
  

• Promissory Estoppel: The doctrine allowing recovery on a promise made without consideration when the reliance on the promise was reasonable, and the promisee relied to his or her detriment.

  
  

• Statue of Frauds: A statute requiring certain contracts to be in writing and signed by the parties bound, to prevent fraud and other injury. The most common types of contracts to which the statute applies are contracts that involve the sale or transfer of land, and contracts that cannot be completed within one year.