What is a Contract?
This is the first in a series of articles which will explore contract law.
Restatement (Seconds) of Contracts defines a contract as follows: “A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.” A promise is defined as thus: “A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made.” The person who manifests the intention is the promisor. A promise may be stated in words, either oral or written. A contract may also be inferred wholly or partly from conduct.
When a party files a suit claiming a breach of contract, the court must first decide if a contract was made. There are certain elements which must be demonstrated by the plaintiff, such as assertion and whether or not an offer was made. Consideration, along with an offer and acceptance of said offer are necessary for the formation of a contract. If burden of proof is not met the case will be dismissed.
The three steps of proving that a contract has been made include:
- Proof that an offer was made.
- Proof that the offer was accepted.
- That there was consideration. For purposes of enterting into a contract, consideration is defined as a promise, performance, or forbearance bargained by a promisor in exchange for their promise.
Each of these elements must be demonstrated in order to prove that a contract has been formed. In the following articles, we will explore the various aspects of contract law in much more detail.
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Dwayne is the author of A Legally Created People.
