A contract is an agreement between two or more people (or parties) that creates legal responsibilities that can be enforced.
A contract is made when one person makes an offer, another person accepts it, and something of value (called consideration) is exchanged.
An offer is when someone says they’re willing to do something for another person or willing to provide something to another person in exchange for something.
Acceptance is when the person who receives the offer agrees to it. This can be done by saying they agree, or by agreeing in writing, or by acting in a way that shows they agree.
If the person receiving the offer mostly agrees but also changes the terms or adds new ones, it is usually considered a new offer (called a counteroffer) instead. A counteroffer requires acceptance from the original party, or it cannot become a contract.
Consideration is something of value that one person agrees to give or do in return for what the other person gives or does.
A promisor is someone who agrees to do something in a contract. The promisor is making a promise.
A promisee is the person who receives a promise from the promisor.
An obligation is a legal duty for someone to do something or to not do something.
A breach of contract is a violation of an obligation in a contract. This happens when someone breaks a promise in a contract by not doing what they agreed to, or by refusing to do a thing they agreed to (which is called repudiation), or by getting in the way of the other person doing their part of the contract.
A void contract has no legal effect, which means it’s not a contract that can be enforced. This can happen if something is technically wrong with the contract, if it goes against the law, or if it’s not allowed because it is against public policy.
Most contracts can be written or oral (spoken) and still be a legal contract, but some kinds must be in writing to be able to be enforced.
Oral (spoken) contracts are hard to prove because there’s no clear record of what the terms were and what everyone agreed to. If you want to make an enforceable contract, it’s a good idea to put the contract in writing and have everyone sign it.
Contracts
An overview of the law regarding contracts, provided by the Legal Information Institute at Cornell Law School.
Contracts and Consumer Law
Frequently asked questions about contracts, provided by the American Bar Association.
Contracts 101: Make a Legally Valid Contract
Information about contracts, provided by Nolo.com.
A contract is an agreement between two or more people (or parties) that creates legal responsibilities that can be enforced.
A contract is made when one person makes an offer, another person accepts it, and something of value (called consideration) is exchanged.
An offer is when someone says they’re willing to do something for another person or willing to provide something to another person in exchange for something.
Acceptance is when the person who receives the offer agrees to it. This can be done by saying they agree, or by agreeing in writing, or by acting in a way that shows they agree.
If the person receiving the offer mostly agrees but also changes the terms or adds new ones, it is usually considered a new offer (called a counteroffer) instead. A counteroffer requires acceptance from the original party, or it cannot become a contract.
Consideration is something of value that one person agrees to give or do in return for what the other person gives or does.
A promisor is someone who agrees to do something in a contract. The promisor is making a promise.
A promisee is the person who receives a promise from the promisor.
An obligation is a legal duty for someone to do something or to not do something.
A breach of contract is a violation of an obligation in a contract. This happens when someone breaks a promise in a contract by not doing what they agreed to, or by refusing to do a thing they agreed to (which is called repudiation), or by getting in the way of the other person doing their part of the contract.
A void contract has no legal effect, which means it’s not a contract that can be enforced. This can happen if something is technically wrong with the contract, if it goes against the law, or if it’s not allowed because it is against public policy.
Most contracts can be written or oral (spoken) and still be a legal contract, but some kinds must be in writing to be able to be enforced.
Oral (spoken) contracts are hard to prove because there’s no clear record of what the terms were and what everyone agreed to. If you want to make an enforceable contract, it’s a good idea to put the contract in writing and have everyone sign it.
