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AmericanContractLawDefinitionofcontractIntheAmericanLawInstitute’sRestatementofContractLaw2nd,acontractisdefinedasapromiseorasetofpromisesforthebreachofwhichthelawgivesaremedy,ortheperformanceofwhichthelawinsomewayrecognizesasaduty.[1]Acontractisalsoanagreementwhichmanifestthemutualassentoftheparties.Themutualassentisreachedwhenonepartymakesanoffertoanotherpartyandanotherpartyacceptsit.Thisisusuallycalledthepartiescometoameetingofminds.Anoralcontractisvalidinmanycasesexceptcertaintypesprovidedbylawwhichmustbewriting.BasicelementsofacontractTherearesomebasicelementsforavalidcontract----capacity,mutualassentconsiderationandsoon.Firstofall,bothpartiesmusthavelegalcapacitywhentheyenterintoacontract.Generally,ifonepartycouldnothaveafullunderstandingofhisrightsandthenature,purposeandlegaleffectsofthecontract,hewillnothavethecapacitytothecontract.Thesepeopleusuallyinvolveminors,whichisthepersonsunder18yearsoldinmoststateslawoftheUnitedStates,mentalincompetents,intoxicatedpersonsanddrugaddicts.However,acontractinvolvingaminorisnotvoidbutvoidable;itcanbeaffirmedordisaffirmedbyhisguardianswhichisbasedonthejusticeandcanalsoprotectthesecurityoftransactionsmaximally.Atthesametime,thelegalrighttodealwiththeobjectsforacontractisnecessary,orthecontractisalsovoidable.Thenifthereisnomutualassent,thereisnovalidcontract.[2]Usuallymutualassentisdemonstratedbyofferandacceptance.AccordingtotheRestatementofContractLaw2nd,"anofferisamanifestationofintenttobecontractuallybounduponacceptancebyanotherparty."Foravalidoffer,somespecifictermsshouldbeinvolvedsuchthattheoffereecanmerelysay“Iaccept”.Forexample,ifawritetosomeonethatIwantsellmyhouse,thisisnotanoffer,becauseIdonotmentiontheprice,thebuild-upareaofthehouseandsoon.Itisjustaninvitationtotreat.Itisimportanttodistinguishthedifferencebetweenanofferandaninvitationtotreat.Anofferisusuallysenttothecertainpersonandincludesthespecificterms,butaninvitationtotreatisgenerallyanoffertouncertainpersons,suchasanadvertisementinanewspaper.Anacceptancealso
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