Contract

An agreement creating obligations enforceable by law. The basic elements of a contract are mutual
assent, consideration, capacity, and legality. In some states, the element of consideration can be
satisfied by a valid substitute. Possible remedies for breach of contract include general damages,
consequential damages, reliance damages, and specific performance. See more
at http://www.law.cornell.edu/wex/contract

Key Terms:

acceptance

Assent to the terms of an offer. Acceptance must be judged objectively, but can either be expressly
stated or implied by the offeree's conduct. To form a binding contract, acceptance should be relayed
in a manner authorized, requested, or at least reasonably expected by the offeror.
(http://www.law.cornell.edu/wex/acceptance)

assent

An intentional approval of known facts that are offered by another for acceptance; agreement;
consent. (http://legal-dictionary.thefreedictionary.com/assent)

consideration

Something bargained for and received by a promisor from a promisee. Common types of
consideration include real or personal property, a return promisee, some act, or a forbearance.
Consideration or a valid substitute is required to have a contract.
(http://www.law.cornell.edu/wex/consideration)

damages

A remedy in the form of monetary compensation to the harmed party

(http://www.law.cornell.edu/wex/damages). General contract damages are damages that arise
directly and inevitably from a breach of contract. In other words, those damages that would be
theoretically suffered by every injured party under these circumstances.
(http://www.law.cornell.edu/wex/general_damages)

expectation damages
Damages awarded when a party breaches a contract that are intended to put the injured party in as
good of a position as if the breaching party fully performed its contractual duties.
(http://www.law.cornell.edu/wex/expectation_damages)

mutual assent

Agreement by both parties to a contract. Mutual assent must be proven objectively, and is often
established by showing an offer and acceptance (e.g., an offer to do X in exchange for Y, followed by
an acceptance of that offer). (http://www.law.cornell.edu/wex/mutual_assent)

offer

A promise to do or refrain from doing something in exchange for something else. An offer must be
stated and delivered in a way that would lead a reasonable person to expect a binding contract to
arise from its acceptance. (http://www.law.cornell.edu/wex/offer)

promissory estoppel

The doctrine allowing recovery on a promise made without consideration when the reliance on the
promise was reasonable, and the promisee relied to his or her detriment.
(http://www.law.cornell.edu/wex/promissory_estoppel)

statute of frauds

A statute requiring certain contracts to be in writing and signed by the parties bound by the contract.
The purpose is to prevent fraud and other injury. The most common types of contracts to which the
statute applies are contracts that involve the sale or transfer of land, and contracts that cannot be
completed within one year. (http://www.law.cornell.edu/wex/statute_of_frauds)