Restatement (Second) of Contracts · Section § 2
This section defines a contract as a promise or set of promises that the law will enforce, essential for understanding contractual obligations.
Source: Restatement Restatement (Second) of Contracts § § 2
A promise is a manifestation of intention to act or refrain from acting in a specified way, which is made in a way that induces acceptance.
This section lays out the basic definition of a promise and contract. It explains that a promise is made when one party expresses an intention to do something or not do something, and that intention can create a binding contract if it is accepted.
A promise must be clear and definite to be enforceable.
The intention to create a legal obligation is key in determining if a promise constitutes a contract.
Illustration 1
If person A says to person B, 'I will sell you my car for $5,000,' and B accepts, this is a contract.
Illustration 2
If person A merely expresses an intent to sell a car without any terms, it does not constitute a binding promise.
This case illustrated the necessity of clear acceptance of terms for a promise to be legally binding as outlined in § 2.
Section 2 is crucial for understanding basic contract law, as it defines the foundational elements of a promise. This clarity aids both individuals and businesses in recognizing when a legally enforceable agreement has been made.