Chapter 11



A contract is an agreement between two or more parties that is legally binding and enforceable in a court of law. Performance in accordance with the agreement is an obligation or duty under the law. A failure to perform is a breach for which the law offers a remedy. All contracts consist of three essential elements: an offer, an acceptance, and some form of consideration. A failure to form a valid contract when intended, or inadver­tently committing a business to obligations, can be catastrophic.


Uniform commercial code

Contract formation


Commercial impracticability


Informal Agreements Can Lead to Intractable Arguments

A litigation involving founder Mark Zuckerberg, ...

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