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What is Contracts Law?

The concept of a contract dates back to ancient times. However, the modern rules regarding the formation and interpretation of contract is largely derived from the common law legal system. A contract is an agreement between two or more people having a lawful objective to do some thing or purchase some product in exchange for a corresponding exchange of value.

The elements of a contract are:

Offer and Acceptance (often called a meeting of the minds)

Consideration (the value exchanged between the parties)

and Mutuality of Obligation (one cannot be required to give substantially more than the other)

Some also consider capacity, or the legal competence to enter into a contract, an element of its formation.

Remedies

Contracts usually have two primary forms of recovery: damages, or the money equivalent to the value the party would have received from the contract had there been no breach, and specific performance, or the requirement that the party must carry out its obligations under the agreement.

Both of these remedies award the non-breaching party with the lost benefit of the bargain or the expectation damages.

Related Concepts

In some instances, even when one of the elements of contract formation are absent, the law requires the creation of a fictional agreement, called a quasi-contract. Unjust enrichment keeps one from receiving the benefit of a product without paying for it, even if they did not formally contract for it. Quantum meruit is a similar concept but usually pertains to the provision of services.

For more information about contract law, you can review the materials found below or you can find an attorney in your jurisdiction by visiting the Law Firms page on our website.