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Contract law in the United States: Difference between revisions
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== Option contract == | == Option contract == | ||
An option contract is created when the offeror keeps an '''offer''' open for a short amount of time in exchange for the offeree’s '''consideration'''. | An option contract is created when the offeror keeps an '''offer''' open for a short amount of time in exchange for the offeree’s '''consideration'''. On the other hand, a '''firm offer''' doesn't require consideration. | ||
==External links== | ==External links== | ||
*[https://www.justia.com/law-schools/justia-case-law-outlines/contracts-cases-outline/ Contracts cases at Justia] | *[https://www.justia.com/law-schools/justia-case-law-outlines/contracts-cases-outline/ Contracts cases at Justia] | ||
Revision as of 15:20, June 18, 2023
An agreement that may be legally enforced is a contract.
Main sources
In the United States, there are 2 main sources of contracts:
- 2nd Re-statement of Contracts outlines rules found in the common law of contracts
- Article 2 of the Uniform Commercial Code (UCC) is a set of uniform statutes governing the sale of goods.
UCC has been adopted by all 50 states.
Requirements of a contracts
A contract requires 4 elements:
- offer is willingness to enter into a bargain
- acceptance is an expression of assent to an offer; acceptance can be a promise (bilateral) or performance (unilateral)
- intent
- consideration is the exchange of something of value between the parties.
(offer) + (acceptance) = (mutual assent) = (meeting of the minds)
Option contract
An option contract is created when the offeror keeps an offer open for a short amount of time in exchange for the offeree’s consideration. On the other hand, a firm offer doesn't require consideration.
