Contract Law

Running head: CONTRACT LAW
CONTRACT LAW
Name of the Student:
Name of the University:
Author Note:

1CONTRACT LAW
Introduction:
The issue involved in this case study is whether there is any contract executed between
Camille and Sonya.
Rules:
The Restatement (Second) of the Law of Contracts (1981) provides for the provisions of
contract law in USA. The contract is a mutual agreement enforceable by law, between two or
more parties creating rights and obligations for each other (Knapp, Crystal and Prince 2019). The
main ingredients of a contract are offer, acceptance, consideration and legal purpose (Smits
2017).
According to Baltimore & Ohio Railroad Co. v US (1923), the mutual consent is actually
acknowledgement and meeting of minds of the parties to the contract and is generally established
by the process of offer and acceptance. Consensus ad idem or meeting of minds is a term in
contract law that denotes the intentions of the parties forming contract.
Lefkowitz v. Great Minn Store Inc (1957) provides that offer is a promise showing
willingness by the promisor to be legally bound by the terms of the contract. Acceptance in
general means giving assent to the terms of the offer. Acceptance occurs when an offeree gives
consent to be mutually bound to the terms of the contract by giving some consideration or
something valuable to seal the deal as discussed in the case of ProCD, Inc. v. Zeidenberg (7th
Cir. 1996).
The next element of a valid contract is known as consideration. Consideration is defined
under section 75 of the Restatement of the Law of contracts. According to Fire Ins. Ass’n v.