Contract Law

Steps

100

This is the process by which parties create a legally binding agreement.

Formation of a contract

200

This is a definite promise to be bound, made by one party to another.

Offer

300

This is the clear agreement to the terms of an offer.

Acceptance

400

This occurs when the responding party changes the terms of the original offer.

Counter-offer

500

Mutual exchange of promises or obligations between the parties to a contract.

Consideration

Roles

100

This is the person who makes the offer.

Offeror

200

This is the person who receives the offer.

Offeree

300

This happens when the offeree refuses the offer.

Rejection

400

This is the transfer of contractual rights to a third party.

Assignment

500

The act of giving another person the responsibility of carrying out the performance

Delegation

Terms

100

These are the necessary contract details that must be definite for enforcement.

Essential terms

200

This refers to what is being bought, sold, or exchanged in the contract.

Subject matter

300

This is the amount of money or value exchanged for the subject matter.

Price

400

A fundamental, essential term that goes to the root of the agreement, determining when and if parties must perform their obligations.

Condition

500

The process of ending a contract before the obligations within it have been fulfilled by all parties.

Termination

Courtroom

100

A contract that can be upheld in court is described as this.

Enforceability

200

This law requires certain contracts to be in writing to be valid.

Statute of Frauds

300

Contracts involving this type of property must usually be in writing.

Real property

400

Courts may look at this to determine whether a contract exists, even if not written.

Conduct of the parties

500

A civil wrong that entitles the injured party to seek legal remedies, most commonly monetary damages

Breach of contract

Clauses

100

This contractual provision addresses the risk of loss if performance becomes impossible or impracticable.

Force Majeure

200

This clause regulates whether and how contract rights can be transferred to a third party.

Assignment

300

A contractual provision requiring a party in breach to pay a pre-determined amount to the other party as compensation

Liquidated Damages

400

This clause in loan agreements (e.g., mortgages) allows lenders to demand full payment if a borrower defaults, such as missing payments.

Acceleration

500

A contract provision ensuring that if one or more sections of an agreement are deemed invalid, illegal, or unenforceable by a court, the remainder of the contract remains in full effect.

Severability