Contract Defined

A contract is a legally enforceable promise formed by mutual assent and consideration.

Representative cases

• Episcopal Retirement Homes, Inc. v. Ohio Department of Industrial Relations 61 Ohio St. 3d 366 · Ohio Supreme Court
• Town of Geraldine v. Montana Municipal Insurance Authority 2008 MT 411 · Montana Supreme Court
• Lexon Ins v. FDIC 7 F.4th 315 · Court of Appeals for the Fifth Circuit

Related Formation rules

• Offer RequirementsAn offer is a manifestation of intent to be bound with definite terms communicated to an identifiable offeree.
• Termination of OfferOffers terminate by revocation, rejection, lapse, death, or destruction of subject matter.
• Option ContractsAn option is irrevocable when supported by consideration for a promise to keep the offer open.
• Firm Offers (UCC)A merchant’s signed writing assuring it will remain open is irrevocable for the period stated, up to 3 months.
• Acceptance: Mirror RuleUnder common law, acceptance must mirror the offer; additional or different terms are counteroffers.
• Acceptance by PerformanceUnilateral contracts are accepted only by complete performance.
• Acceptance by PromiseBilateral contracts are accepted by a return promise or beginning performance.
• Mailbox RuleAcceptance is effective upon dispatch unless otherwise specified.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.