| A | B |
|---|
| contract | Any agreement enforceable by law. |
| offer | A proposal made by one party (the offeror) to another party (the offeree) indicating a willingness to enter a contract |
| acceptance | The agreement of the offeree to be bound by the terms of the offer |
| genuine agreement | Offer and acceptance go together to create genuine agreement, or a meeting of the minds. Agreement can be destroyed by fraud, misrepresentation, mistake, duress, or undue influence. |
| consideration | Consideration is the thing of value promised to one party in a contract in exchange for something else of value promised by the other party. The mutual exchange binds the parties together |
| capacity | The law presumes that anyone entering a contract has the legal capacity to do so. Minors are generally excused from contractual responsibility, as are mentally incompetent and drugged or drunk individuals. |
| legality | Parties are not allowed to enforce contracts that involve illegal acts. Some illegal contracts involve agreements to commit a crime or a tort. Others involve activities made illegal by statutory law. |
| void contract | A contract that has no legal effect. A contract that is missing any of of the six elements is void. |
| voidable contract | This occurs when a party to a contract is able to void or cancel a contract for some legal reason such as a contract between a minor and an adult. This type of contract is voidable by the minor. |
| unenforceable contract | A contract that the court will not uphold, generally because of some rule of law, such as the statute of limitations. If you wait too long to bring a lawsuit for breach of contract, the statute of limitations may have run its course. |
| express contract | A contract that is stated in words and may be either oral or written |
| implied contract | This type of contract comes about from the actions of the parties. People often enter into implied contracts without exchanging a single word. |
| bilateral contract | This is a contract that contains two promisesOne party promises to do something in exchange for the other’s promise to do something else. |
| unilateral contract | This type of contract contains a promise by only one person to do something, if and when the other party performs some act. A reward offer is one of the most common instances of this type of contract. |
