1
Contract Formation
Offer, Acceptance &
Consideration
What is a Contract?
• “A contract is a promise or a set of promises
for the breach of which the law gives a
remedy or the performance of which the law
in some way recognizes as a duty.”
Restatement of the Law of Contracts,
Second
• A ‘promise’ is an integral component of an
offer.
What is an Offer?
• A legal offer is a promise (by the offeror)
that proposes a valid exchange.
• “I will drive you to Los Angeles if you wash
and wax my car.”
• “I will sell you my car for $1200.”
•(I promise) I will drive you to Los Angeles,
if you wash and wax my car.”
• (I promise) I will sell you my car, if you pay
me $1200.
