Contract Law Overview

The process of creating a legally binding agreement, usually requiring an offer and acceptance.

A clear indication by one party to another that they are willing to enter a binding agreement.

The clear expression of agreement to the terms of an offer by the other party.

A legally binding agreement that meets the required criteria.

Contracts related to a business transaction (e.g., sales of goods or services).

A standard used to determine if a person's actions (like an offer or acceptance) would be understood by a typical person.

Figuring out what the contracts actually mean.

When one party does not fulfill their part of a contract.

The offeree's clear indication to the offeror that they agree to the terms of the offer, either through words or actions.

The person making the offer.

The person to whom the offer is made.

Something of value (item or service) exchanged between parties in a contract.

Something done or promised in exchange for a contractual promise; must have a bargain, mutual exchange, and specific value.

A contract's enforceability based on various factors like capacity, misrepresentation, duress, and unconscionability.

The legal ability to enter into a contract, often based on age or mental ability.

A false statement of fact that influences contract formation. Hiding important information is also misrepresentation.

Being forced or coerced into a contract.

A contract that is unfairly one-sided or oppressive.

The principle that individuals can enter into any agreements they wish.

Determining the meaning of a contract's terms, especially in written contracts.

The act of taking back an offer before it's accepted.

The act of taking back an acceptance before it's received.

The length of time an offer remains open for acceptance.

The extent to which an acceptance must mirror the exact terms of the original offer.

Contractual obligations that are not explicitly written but are assumed by law, based on fairness and good faith.

A legal requirement for parties in a contract to act honestly and fairly in their interactions, even if not explicitly stated.

When one party fails to fulfill their obligations as agreed upon in the contract.

When one party completes only a portion of their contractual obligations.

A legal doctrine that excuses non-performance of a contract due to events outside the party's control, like natural disasters.

A serious violation of the contract that significantly alters its purpose, allowing for termination and compensation.

Financial compensation awarded to the harmed party for losses caused by a breach of contract.

A method of calculating damages by assessing the difference between the expected benefit and the actual outcome due to the breach.

A method of calculating damages by restoring the injured party to their financial position before entering the contract.

A remedy that prevents the breaching party from unfairly benefiting from a contract they violated.

The legal principle requiring the harmed party to take reasonable steps to minimize their losses after a breach of contract.

A remedy where a court orders the breaching party to fulfill their contractual obligations, rather than just paying damages.

The legal process determining when ownership of goods passes from seller to buyer, impacting risk and financing.

A formal, but outside-of-court, process where parties agree on rules, procedures, and who decides their dispute. Think of it like a private mini-trial.

A less formal process where a neutral third party helps repair damage, focusing on solutions, not assigning blame.

A process where a neutral party helps parties communicate and reach a solution themselves. It's all about finding common ground.

Direct communication between parties, without a third party, aiming to resolve disputes through compromise and agreement.

The agreed-upon timeline for when payments are made in a contract, especially relevant in sales where financing might be involved.

The legal rights of individuals or organizations not directly involved in the initial contract, but may be affected by it (e.g., a bank lending for a purchase).

The fundamental terms needed for a legally binding sales contract, like price, goods description, quality, delivery details, and payment arrangement.

An international agreement that sets basic rules for international commercial contracts, including sales contracts.

Using computers and electronic networks to conduct business transactions, like online orders and digital payments.

A legal framework developed by the United Nations to help countries regulate electronic commerce, addressing challenges like contracts in digital form.

A set of rules created by the International Chamber of Commerce (ICC) to guide the use of digital signatures in e-commerce.

A formal but less public way to resolve disputes between businesses, usually used in international transactions.

Sections in a contract that tell how disagreements will be handled if they arise, especially important in international sales.

Several choices parties make in a contract regarding which law applies to their agreement, where disputes will be settled, and how the process works.