Contract Law: Key Concepts, Types, and Remedies
Freedom of Contract - ANSWER People can make their own agreements as long as they are
legal and voluntary
Restatement of Contracts (2d) - ANSWER A summary of contract law rules used by courts
Uniform Commercial Code (UCC) - ANSWER Law that governs the sale of goods
Lex Mercatoria - ANSWER International law based on merchant customs
Binding Promise - ANSWER A promise that is legally enforceable
Purpose of Contract Law - ANSWER To enforce agreements and provide remedies for breaches
Binding vs. Non-binding Promise - ANSWER Binding is enforceable, non-binding is not
Express Contract - ANSWER Terms are clearly stated in words
Implied Contract - ANSWER Formed through actions or conduct
Elements of a Valid Contract - ANSWER Offer acceptance consideration capacity legality
Intent - ANSWER Parties intend to create a legal agreement
Preliminary Negotiations - ANSWER Early discussions that are not yet a contract
, Ads - ANSWER Usually invitations to negotiate not offers
Communication of Offer and Acceptance - ANSWER Offer and acceptance must be clearly
communicated
Termination or Withdrawal of Offer - ANSWER Offer ends by revocation rejection time or law
Option Contracts - ANSWER A paid promise to keep an offer open
Counteroffer - ANSWER Rejects original offer and proposes new terms
Termination as a Matter of Law - ANSWER Offer ends automatically due to death illegality or
impossibility
Bilateral vs. Unilateral Contracts - ANSWER Bilateral is promise for promise unilateral is
promise for performance
Acceptance - ANSWER Agreement to the terms of an offer
Consideration - ANSWER Something of value exchanged
Promissory Estoppel - ANSWER Promise enforced due to reliance without consideration
Capacity - ANSWER Legal ability to enter a contract
Void Voidable and Valid Contracts - ANSWER Void has no effect voidable can be canceled valid
is enforceable
Freedom of Contract - ANSWER People can make their own agreements as long as they are
legal and voluntary
Restatement of Contracts (2d) - ANSWER A summary of contract law rules used by courts
Uniform Commercial Code (UCC) - ANSWER Law that governs the sale of goods
Lex Mercatoria - ANSWER International law based on merchant customs
Binding Promise - ANSWER A promise that is legally enforceable
Purpose of Contract Law - ANSWER To enforce agreements and provide remedies for breaches
Binding vs. Non-binding Promise - ANSWER Binding is enforceable, non-binding is not
Express Contract - ANSWER Terms are clearly stated in words
Implied Contract - ANSWER Formed through actions or conduct
Elements of a Valid Contract - ANSWER Offer acceptance consideration capacity legality
Intent - ANSWER Parties intend to create a legal agreement
Preliminary Negotiations - ANSWER Early discussions that are not yet a contract
, Ads - ANSWER Usually invitations to negotiate not offers
Communication of Offer and Acceptance - ANSWER Offer and acceptance must be clearly
communicated
Termination or Withdrawal of Offer - ANSWER Offer ends by revocation rejection time or law
Option Contracts - ANSWER A paid promise to keep an offer open
Counteroffer - ANSWER Rejects original offer and proposes new terms
Termination as a Matter of Law - ANSWER Offer ends automatically due to death illegality or
impossibility
Bilateral vs. Unilateral Contracts - ANSWER Bilateral is promise for promise unilateral is
promise for performance
Acceptance - ANSWER Agreement to the terms of an offer
Consideration - ANSWER Something of value exchanged
Promissory Estoppel - ANSWER Promise enforced due to reliance without consideration
Capacity - ANSWER Legal ability to enter a contract
Void Voidable and Valid Contracts - ANSWER Void has no effect voidable can be canceled valid
is enforceable
