Principles of Contract Law
Contract law deals with the formation and keeping of promises. Although aspects of contract law vary from state to state, much of it is based on the common law. In 1932, the American Law Institute compiled the Restatement of the Law of Contracts. This work is a nonstatutory, authoritative exposition of the present law on the subject of contracts and is presently in its second edition. The Function of Contracts Promisor–a person who makes a promise Promisee–a person to whom a promise is made Contract–an agreement that can be enforced in court; formed by two or more parties who agree to perform or to refrain from performing some act now or in the future. Types of Contracts Offeror– Offeree– Whether a contract is classified as unilateral or bilateral depends on what the offeree must do to accept the offer and to bind the offeror to a contract. Bilateral contract– An example of a bilateral contract is a contract in which one person agrees to buy another’s automobile for