Restatement (Second) of Contracts · Section § 1
Overview of the foundational concepts underlying contract formation as defined in Section 1 of the Restatement (Second) of Contracts.
Source: Restatement Restatement (Second) of Contracts § § 1
A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.
This section states that a contract consists of a promise or promises that can be enforced by law, either through remedies for breach or obligations to perform. It establishes the basic principle that contracts are legally binding agreements.
Contracts can consist of promises made by one party, which are enforceable against them.
The definition encompasses both express and implied promises.
Illustration 1
A homeowner promises to pay a contractor for renovations; if the contractor performs but the homeowner fails to pay, a breach of contract occurs.
Illustration 2
If a store offers a reward for the return of lost property, the promise to pay the reward is enforceable once someone returns the property.
This case illustrates the enforceability of a promise made in a contract, focusing on what comprises a valid agreement.
Understanding the definition of a contract is essential for recognizing enforceable agreements in various settings. This section provides clarity to legal practitioners on the nature of promises and their legal ramifications.