Contract Formation
A legally enforceable agreement between two or more competent parties that creates an obligation to perform or not perform a particular duty.
Contract
A response to an offer that changes the terms of the original offer, thereby rejecting the original offer and creating a new one.
Counteroffer
The legal ability of a party to enter into a binding contract, requiring them to be of legal age and mental competency.
Capacity
The transfer of a contractual right from the original party (assignor) to a third party (assignee).
Assignment
A serious failure to perform a fundamental term of the contract, which excuses the other party from their own performance.
Material Breach
A binding commitment made by one party (the offeror) to another (the offeree) with the intent to enter a contract.
Offer
The principle that an acceptance must match the exact terms of the offer without changes or additions to be valid.
Mirror Image Rule
The legal right of a minor (or other party lacking capacity) to cancel or avoid a contract they have entered.
Disaffirmance
The transfer of a contractual duty or obligation from the original party to a third party.
Delegation
A clear and unequivocal statement by one party that they will not perform their contractual obligations before the performance is due.
Anticipatory Repudiation
The offeree's unequivocal and unqualified agreement to the terms of the offer, signaling mutual consent.
Acceptance
The withdrawal of an offer by the offeror before it has been accepted by the offeree.
Revocation
Wrongful or unlawful pressure that overcomes a person's free will and forces them to agree to a contract.
Duress
A third party who is specifically designated in the contract to receive a benefit and has the legal right to enforce the contract.
Intended Beneficiary
A monetary award paid to the non-breaching party to compensate for the loss or injury suffered due to the breach.
Damages
The element of a contract where both parties understand and agree to the basic terms; often called a "meeting of the minds."
Mutual Assent
A law requiring certain types of contracts, such as those involving land or lasting longer than one year, to be in writing to be enforceable.
Statute of Frauds
Improper persuasion by a trusted person (like a caregiver or attorney) that unfairly takes advantage of another's weakness or emotional state.
Undue Influence
An error made by one or both parties regarding a basic assumption on which the contract was made, which can sometimes allow the contract to be voided.
Mistake of Fact
A court order requiring the breaching party to actually perform the specific promise made in the contract, often used when the subject matter is unique (like land).
Specific Performance
The bargained-for exchange of value (money, goods, services, or a promise) that makes a contract legally binding.
Consideration
A contract element that is void because its purpose or subject matter violates a statute or public policy.
Illegality
A false statement of a material fact made during contract negotiations that induces the other party to enter the contract.
Misrepresentation
Failure, without legal excuse, to perform the obligations and duties established by the contract terms.
Breach of Contract
A specific sum of money, pre-agreed upon in the contract, that will be paid as compensation if one party breaches the agreement.
Liquidated Damages