Original Source: Cornell University Law School

“Definition

An agreement between private parties creating mutual obligations enforceable by law.  The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.  In some states, element of consideration can be satisfied by a valid substitute.  Possible remedies for breach of contract include general damages, consequential damages, reliance damages, and specific performance.  

Overview

Contracts are promises that the law will enforce.  Contract law is generally governed by the state Common Law, and while general overall contract law is common throughout the country, some specific court interpretations of a particular element of the Contract may vary between the states. If a promise is breached, the law provides remedies to the harmed party, often in form of monetary damages, or in limited circumstances, in the form of specific performance of the promise made.  

Elements — Consideration and mutal assent 

Contracts arise when a duty comes into existence, because of a promise made by one of the parties. To be legally binding as a contract, a promise must be exchanged for adequate consideration.  There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration…” 

https://www.law.cornell.edu/wex/contract

Contributors: Open Source
Categories: SIG U Resource, Whitepaper
SRC Type: Governance, Risk Management, Sourcing Management