Contract Law Basics

An agreement enforceable by law, consisting of a promise or set of promises.

A promise or set of promises.

An offer to form a contract.

Unconditional agreement to a proposal.

An agreement and its enforceability under law.

Usually proposes in common law contracts, but must tailor a proposal to the seller's conditions.

Stipulates conditions but doesn't propose; the buyer formulates their offer in response to conditions.

Illustrates that a buyer's response to seller conditions must be a complete proposal, not simply acceptance of conditions themselves.

The process of writing down contract laws in a systematic way, making them accessible and easier to amend.

A principle stating that agreements must be kept, as a promise or word is binding.

Contracts drive wealth creation and societal progress by enabling people to alter economic situations, thus advancing society.

Creating a contract involves one party offering something and another party agreeing to the offer.

Codified laws offer transparency, easy access, and adjustability to societal and technological change.

Contracts are essential for a dynamic society; they allow better economic and social decisions by people and drive the evolution of societal wealth.

Codified laws are readily accessible and are adaptable; compared to laws created by judges, codified law is potentially rigid.

Rapid industrialization led to an increased need for transparency and codified contract law in order to improve the efficiency of societal relationships.

A communication that invites interested parties to make offers, but isn't considered an offer itself.

A definite and clear proposal made by one party to another that, when accepted, creates a legally binding agreement.

The principle of requiring clear and specific terms in legal agreements to avoid disputes and ambiguities.

An advertisement for an auction is typically considered an invitation to treat, not an offer.

The ability of a judge to use their judgment and consider specific circumstances of a case when making a decision.

A response to an offer that changes or adds conditions, effectively rejecting the original offer.

A legal system where legal concepts like invitation to treat can be assessed in alternative approaches.

A promise made in response to another promise, forming the basis of an agreement.

A promise offering a choice between two or more options, allowing the promisee to select one.

An agreement that depends on a future uncertain event happening.

An agreement that depends on certain conditions being met, either explicitly stated or implied.

The location where acceptance of an offer is deemed to occur, determining jurisdiction in legal disputes.

A legal principle stating that acceptance is complete when it is put into the course of transmission, not upon receipt.

A landmark legal case that reversed the postal rule, holding that acceptance is complete when and where it is received.

Agreement given voluntarily, without coercion, undue influence, fraud, or misrepresentation.

An offer is not instantaneous; it takes shape through back-and-forth communication, including inquiries, price discussions, and terms negotiations, before finally crystallizing into a complete proposal.

An offer must include all essential details of the proposed agreement, such as the subject matter, price, terms, payment, and any necessary warranties or guarantees.

The point at which an offer becomes complete and definite, encompassing all essential terms and conditions.

Terms and conditions stated elsewhere, such as on the back of a document, must be clearly brought to the attention of the other party.

When terms are incorporated elsewhere, the offer must provide sufficient notice to the other party to access them.

An offer is only made when it reaches the intended recipient's knowledge.

Before acceptance, the prospective buyer must fully understand the terms and conditions of the offer.

In the process of negotiation, there might be multiple exchanges of proposals and counter-proposals; true acceptance happens when all terms are agreed upon.

Silence alone is not considered acceptance in a legal system. A clear and positive indication of acceptance, such as words or actions, is required.

If a proposal specifies a particular way to accept it, the acceptance must follow that method. Failure to do so could invalidate the acceptance.

Acceptance is complete when it is communicated to the proposer. This means the proposer must be aware of the acceptance.

Actions can sometimes be considered as acceptance, even without explicit words. For example, starting work based on a job offer can be seen as acceptance.

No one can be forced to respond to a proposal. Silence does not automatically mean acceptance, and people have the right to stay silent.

A proposal cannot force someone to accept by requiring silence as acceptance. This is unfair and violates a person's freedom of choice.

A legal system based on clear and positive laws, requiring explicit actions or words to establish legal rights and obligations.

When a proposal specifies acceptance by post, communication occurs when the acceptance letter is correctly mailed, regardless of when it's received.