Contract law in the United States
An agreement that may be legally enforced is a contract.
Main sources[edit | edit source]
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[edit | edit source]
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)
- consideration is the exchange of something of value between the parties.
(offer) + (acceptance) = (mutual assent) = (meeting of the minds)
Option contract[edit | edit source]
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.