Contract law: formation to remedies

Contract law decides which promises the law will enforce. First, a contract needs an offer, an acceptance and consideration. Then the parties must perform, and a court can award a remedy if one of them does not.

Most contract law is state common law. However, courts in every state rely on the Restatement (Second) of Contracts, a summary of the rules written by the American Law Institute. In addition, sales of goods follow Article 2 of the Uniform Commercial Code, which each state has enacted.

Our guides follow the life of a contract in order. First comes formation. Next come the writing requirement, the defenses and the rules for reading the terms. Then come breach, damages and specific performance.

Finally, every guide quotes the rule or case it relies on and links to the source. For a real dispute, talk to a licensed attorney in your state.

Each guide quotes its source. For instance, the formation guide quotes the Restatement sections on offer, acceptance and consideration, and the guide on UCC Article 2 quotes the official text of the Uniform Commercial Code. In addition, the glossary defines terms such as consideration, rescission and specific performance.

However, the law in your state controls. Courts in different states sometimes reach different results on the same facts, so read your own state’s cases as well.