We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Contract

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Are the Basic Principles of Contract Law?

Leigia Rosales
By
Updated: May 16, 2024
Views: 31,146
Share

As with many legal principles, the basic principles of contract law will vary by jurisdiction. Within the United States, a contract requires an offer, an acceptance, and consideration in order to be documented as a valid contract. Additional principles of contract law within the United States include issues surrounding the capacity to enter into a contract, the legality of the purpose of the contract and something known as the "four corners doctrine."

The first step in forming a valid contract is that an offer must be made by one of the parties. A common example is in the sale of a property. The purchaser must make an offer to purchase the property. The offer may include as many or as few terms as the parties choose, but it must include a concrete offer.

Next, the contract must be accepted. Again, in the sale of a property example, the seller must affirmatively accept the offer. The original offer must be accepted as written or spoken. A counteroffer is not considered an acceptance of the original offer. When determining whether or not there was an offer and acceptance, most courts look for a meeting of the minds or a concurrence of wills to decide if the offer-and-acceptance requirements have been met.

Finally, the principles of contract law require that consideration be given for the contract to be valid. Consideration means that something of value was given to one party by the other. Usually, the consideration is money or something else of obvious value. In some cases, however, consideration can take the form of refraining from doing something that the party is otherwise entitled to do. The consideration given must be sufficient, but need not be adequate to validate the contract.

The capacity to enter into a contract can also be considered one of the principles of contract law. Capacity may be affected by many factors. Minors, for instance, do not have the legal capacity to contract. A person's mental state may also be considered when determining whether the person had the requisite capacity to enter into a valid contract.

Many courts also look to the legality of a contract when determining its validity. If a contract requires someone to do something illegal, then it is considered void on its face. Entering into a contract to kill someone, for example, would not be a valid contract since homicide is illegal.

Courts often use the "four corners doctrine" when considering a contract dispute. The principles of contract law generally require the parties to a contract to include all the terms and considerations within the "four corners" of the document. Contracts are not required to be in writing, but, when they are, courts will generally not consider external factors when interpreting the contract itself. Instead, the courts will only look to what was included within the written contract, or the "four corners."

Share
MyLawQuestions is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Leigia Rosales
By Leigia Rosales
Leigia Rosales is a former attorney turned freelance writer. With a law degree and a background in legal practice, she crafts compelling content that informs and engages readers. Her ability to understand complex topics and communicate them effectively makes her a valuable asset to any content creation team.
Discussion Comments
Leigia Rosales
Leigia Rosales
Leigia Rosales is a former attorney turned freelance writer. With a law degree and a background in legal practice, she...
Learn more
Share
https://www.mylawquestions.com/what-are-the-basic-principles-of-contract-law.htm
Copy this link
MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.