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Contract

Overview#

Contract

Legal Contract#

A legal Contract, at its most basic level, is an agreement that creates an obligation that is enforceable by law. This is accomplished by an offeror extending an offer, which in turn, creates the power of acceptance in an offeree. To be legally binding, this exchange must be supported by adequate consideration, or put plainly, a corresponding benefit or detriment to either side of the agreement. Common types of consideration include real or personal property (including money), a return promise, some act, or a forbearance.

Basic Concepts in Contract Law#

Contract Law within the United States is covered by Uniform Commercial Code UCC § PART 2. FORM, FORMATION AND READJUSTMENT OF CONTRACT

There are three main activities required to enter into a contract:

  • agreement implies mutual consent
  • intention to create a legally binding agreement;
  • consideration (‘something of value’ which is given for a promise and is required in order to make the promise enforceable as a contract) in both directions.

Agreement#

Consideration#

More Information#

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