Contract: An enforceable
agreement between two or more
competent parties that creates an
obligation to do or not do a
Consideration: The value or benefit to
be obtained by a party entering into a
contract or agreement such as money or
the promise not to do something.
Breach: The failure of one party
to carry out the terms of the contract,
either by commission or omission.
Damages: Pecuniary compensation
which may be recovered in the courts by
any person who has suffered loss,
detriment, or injury, whether to his
person, property or rights through the
unlawful act or omission or negligence of
Punitive damages: An award in
addition to the actual loss.
Rescission: Agreement to cancel or
repeal the contract plus whatever is
necessary to restore both parties to their
Restitution: Act of restoring a thing to its
Mitigation: Reducing money damages
to the amount of the actual loss.
Specific performance: The requirement
that a party performs exactly what was
specified in the contract.
Statute of Frauds: The legal doctrine
requiring certain contracts be in writing and
signed in order to be legally enforceable.
Uniform Commercial Code (UCC): The
uniform law governing commercial
1. Offer and acceptance
6. Undue influence
3. Mentally Disabled Person
1 . Rescission and restitution
2. Specific performance
1.Real estate sales
2. Promise to pay someone’s debt
3. Contracts that take more than a
year to complete
4. Sale of goods more than $500
5. Contracts where the
consideration is marriage