
- •§ 1.Syn Synopsis to Chapter 1: preliminary definitions 4
- •§ 2.17 Effect of Delay in the Delivery of an Offer 268
- •§ 2.17 Effect of Delay in the Delivery of an Offer 268 § 1.1 The Main Purpose of Contract Law Is the Realization of Reasonable Expectations Induced by Promises
- •§ 1.2 Legal Obligation Defined
- •§ 1.3 N1 Definition of the Term ''Contract''
- •§ 1.4 Contracts of Adhesion
- •§ 1.5 Formal and Informal Contracts
- •§ 1.6 Voidable Contracts
- •§ 1.7 Void Contracts
- •§ 1.8 Unenforceable Contracts
- •§ 1.9 Agreement Defined
- •§ 1.10 ''Bargain'' as a Contractual Expression
- •§ 1.11 Offer Defined
- •§ 1.12 Simultaneous Expressions of Assent: Contracts Without Offer and Acceptance
- •§ 1.13 What Is a Promise?
- •§ 1.14 Promise and Warranty
- •§ 1.15 Expressions of Intention, Hope, Desire, or Opinion
- •§ 1.16 Letters of Intent
- •§ 1.17 Illusory Promises
- •§ 1.18 N1 Assumpsit: Implied Assumpsit, Indebitatus or General Assumpsit, Special Assumpsit
- •[A] Implied Assumpsit
- •[B] Indebitatus or General Assumpsit
- •[C] Special Assumpsit
- •§ 1.19 Express and Implied Contracts
- •§ 1.20 Contract and Quasi Contract Distinguished
- •[A] Quasi Contract as a Source of Primary Rights
- •[B] Quasi Contract as a Remedial Device for Unwinding Failed Agreements
- •§ 1.21 General Contract Law, The Uniform Commercial Code, and the United Nations Convention on Contracts for the International Sale of Goods. [a] General contract law and the Restatements
- •[B] The Uniform Commercial Code.
- •[C] The United Nations Convention
- •§ 1.22 The Uniform Commercial Code as a Source of Common Law
- •§ 1.23 Unilateral Contracts Distinguished From Bilateral
- •Supp. To § 1.1 The Main Purpose of Contract Law Is the Realization of Reasonable Expectations Induced by Promises
- •Supp. To § 1.2 Legal Obligation Defined
- •Supp. To § 1.3 Definition of the Term ''Contract''
- •Supp. To § 1.4 Contracts of Adhesion
- •Supp. To § 1.6 Voidable Contracts
- •Supp. To § 1.7 Void Contracts
- •Supp. To § 1.9 Agreement Defined
- •Supp. To § 1.11 Offer Defined
- •Supp. To § 1.13 What Is a Promise?
- •Supp. To § 1.14 Promise and Warranty
- •Supp. To § 1.15 Expressions of Intention, Hope, Desire, or Opinion
- •Supp. To § 1.16 Letters of Intent
- •Supp. To § 1.17 Illusory Promises
- •Supp. To § 1.18 Assumpsit: Implied Assumpsit, Indebitatus or General Assumpsit, Special Assumpsit
- •Supp. To § 1.19 Express and Implied Contracts
- •Supp. To § 1.20 Contract and Quasi Contract Distinguished
- •Supp. To § 1.22 The Uniform Commercial Code as a Source of Common Law
- •Supp. To § 1.23 Unilateral Contracts Distinguished From Bilateral
- •Part I formation of contracts topic a offer and acceptance chapter 2 offers; creation and duration of power of acceptance
- •§ 2.1 Preliminary Negotiation
- •§ 2.2 Preliminary Communications Compared to Offers-Interpretation
- •§ 2.3 Request for an Offer Is Not an Offer-Auctions and Solicited Offers
- •§ 2.4 N1 Offer by Publication or Advertisement
- •§ 2.5 Quotation of Prices; Estimates
- •§ 2.6 Authority or Instructions to an Agent
- •§ 2.7 N1 Offers at the Supermarket or Self-Service Shop
- •§ 2.8 Partial Agreements-Agreements to Agree and Agreements to Negotiate
- •§ 2.9 Formal Document Contemplated by the Parties
- •§ 2.10 What Constitutes a Written Contract-There May Be a Series of Communications
- •§ 2.11 Delivery of a Document as the Final Expression of Assent
- •§ 2.12 Printed Terms on Billheads, Letterheads, Receipts, Baggage Checks, etc.
- •§ 2.13 Intention to Affect Legal Relations-Social Engagements, Gentlemen's Agreements, Jests and Sham Agreements
- •§ 2.14 Duration of Power of Acceptance Created by an Offer
- •§ 2.15 Missed Deadlines in Option Contracts
- •§ 2.16 Reasonable Time for Acceptance
- •§ 2.17 Effect of Delay in the Delivery of an Offer
- •37 Of 174 documents
- •§ 2.18 Offers Are Usually Revocable
- •38 Of 174 documents
- •§ 2.19 Notice of Revocation Necessary
- •39 Of 174 documents
- •§ 2.20 Revocation Otherwise Than by Direct Notice
- •40 Of 174 documents
- •§ 2.21 Revocation of General Offer by Publication
- •41 Of 174 documents
- •§ 2.22 Irrevocable Offers-Meaning of ''Irrevocable''
- •42 Of 174 documents
- •§ 2.23 Options Created by a Conditional Contract or Covenant
- •43 Of 174 documents
- •§ 2.24 Contract to Keep an Offer Open
- •44 Of 174 documents
- •§ 2.25 Effect of the Rule Against Enhancement of Damages
- •45 Of 174 documents
- •§ 2.26 Offers Made Irrevocable by Statute and Public Policy
- •46 Of 174 documents
- •§ 2.27 Deposits to Be Forfeited in Case of Revocation
- •47 Of 174 documents
- •§ 2.28 Irrevocable Offers Under Seal
- •48 Of 174 documents
- •§ 2.29 Revocation After Part Performance or Tender by the Offeree
- •49 Of 174 documents
- •§ 2.30 Real Estate Brokerage and Other Agency Cases
- •50 Of 174 documents
- •§ 2.31 N1 Effect of Action in Reliance That Is Not Part Performance
- •51 Of 174 documents
- •§ 2.32 N1 Part Performance and the Indifferent Offer
- •52 Of 174 documents
- •§ 2.33 When a Standing Offer of a Series of Separate Contracts Is Irrevocable
- •53 Of 174 documents
- •§ 2.34 Effect of Death or Insanity on Power of Acceptance
- •54 Of 174 documents
- •55 Of 174 documents
- •56 Of 174 documents
- •57 Of 174 documents
- •58 Of 174 documents
- •59 Of 174 documents
- •60 Of 174 documents
- •61 Of 174 documents
- •62 Of 174 documents
- •63 Of 174 documents
- •64 Of 174 documents
- •65 Of 174 documents
- •66 Of 174 documents
- •67 Of 174 documents
- •68 Of 174 documents
- •69 Of 174 documents
- •70 Of 174 documents
- •71 Of 174 documents
- •72 Of 174 documents
- •73 Of 174 documents
- •74 Of 174 documents
- •75 Of 174 documents
- •76 Of 174 documents
- •77 Of 174 documents
- •78 Of 174 documents
- •80 Of 174 documents
- •§ 3.2 In a Bargaining Transaction, Only the Offeree Has Power to Accept
- •81 Of 174 documents
- •§ 3.3 Assignment of Power by an Option Holder-Irrevocable Offers
- •82 Of 174 documents
- •§ 3.4 Motive With Which Offeree Renders Performance
- •83 Of 174 documents
- •§ 3.5 Knowledge of Offer as a Pre-requisite to Acceptance
- •84 Of 174 documents
- •§ 3.6 Knowledge of the Offer After Part Performance Already Rendered
- •Illustration 1
- •85 Of 174 documents
- •§ 3.7 Acceptance ''Subject to Approval'' by a Third Party
- •86 Of 174 documents
- •§ 3.8 Acceptance by Overt Act
- •87 Of 174 documents
- •§ 3.9 Unilateral Contract-Acceptance by Beginning Requested Performance
- •88 Of 174 documents
- •§ 3.10 Acceptance of a Published Offer of a Reward for Action or Contest Prize
- •89 Of 174 documents
- •§ 3.11 When the Words ''I Accept Your Offer'' Would Be Ineffective
- •90 Of 174 documents
- •§ 3.12 Acceptance by Forbearance From Action
- •91 Of 174 documents
- •§ 3.13 When Notice of Acceptance Is Necessary
- •92 Of 174 documents
- •§ 3.14 Notice as a Requisite of Guaranty and Letters of Credit
- •93 Of 174 documents
- •§ 3.15 Notice as a Condition Distinguished From Notice as an Acceptance
- •94 Of 174 documents
- •§ 3.16 Offer of a Promise, Requesting Non-promissory Action in Return
- •95 Of 174 documents
- •§ 3.17 Offer of an ''Act'' for a Promise
- •96 Of 174 documents
- •§ 3.18 Silence as a Mode of Acceptance
- •97 Of 174 documents
- •§ 3.19 Can Offeror Make Silence Operate as Acceptance?
- •98 Of 174 documents
- •§ 3.20 Belated or Conditional Acceptance Followed by Offeror's Silence
- •99 Of 174 documents
- •§ 3.21 Silence Plus Additional Circumstances
- •100 Of 174 documents
- •§ 3.22 Multiple Acceptances
- •101 Of 174 documents
- •§ 3.23 Alternative Modes of Acceptance
- •102 Of 174 documents
- •§ 3.24 Acceptance by Post
- •103 Of 174 documents
- •§ 3.25 Acceptance by Telephone or Other Electronic Means
- •104 Of 174 documents
- •§ 3.26 Withdrawal of a Letter of Acceptance From the Mails
- •105 Of 174 documents
- •§ 3.27 Acceptance by Telegraph-When Operative
- •106 Of 174 documents
- •§ 3.28 Acceptance Must Manifest Assent and Be Unconditional
- •107 Of 174 documents
- •§ 3.29 An Acceptance May Be Unconditional Even Though the Acceptor Makes a Conditional Promise
- •108 Of 174 documents
- •§ 3.30 Acceptance Not Conditional, Even Though Grumbling or Accompanied by a Request or by a New Offer
- •109 Of 174 documents
- •§ 3.31 Subsequent Erroneous Interpretation Does Not Make an Acceptance Conditional
- •110 Of 174 documents
- •§ 3.32 Attempts by the Offeree to Restate in the Acceptance the Terms of the Offer
- •111 Of 174 documents
- •§ 3.33 Attempts by the Offeree to State in the Acceptance the Legal Operation of the Agreement
- •112 Of 174 documents
- •§ 3.34 Mode of Acceptance Can Be Prescribed by the Offeror
- •113 Of 174 documents
- •§ 3.35 Counter-Offers and Their Effect
- •114 Of 174 documents
- •§ 3.36 Power to Accept an Offer Is Terminated by a Counter-Offer or Conditional Acceptance
- •115 Of 174 documents
- •§ 3.37 Conditional Acceptances and Counter-Offers Under the Uniform Commercial Code and the United Nations Convention
- •116 Of 174 documents
- •§ 3.38 A Counter-Offer or Rejection by One Who Has a ''Binding Option'' or an Irrevocable Offer Does Not Terminate the Power of Acceptance
- •117 Of 174 documents
- •§ 3.39 Power of Acceptance Not Terminated by a Counter-Offer if Either Offeror or Offeree So Prescribes
- •118 Of 174 documents
- •§ 3.40 Inquiries and Separate Offers Distinguished From Counter-Offers
- •119 Of 174 documents
- •§ 3.41 Effect of Rejection of an Offer
- •120 Of 174 documents
- •121 Of 174 documents
- •122 Of 174 documents
- •123 Of 174 documents
- •124 Of 174 documents
- •125 Of 174 documents
- •126 Of 174 documents
- •127 Of 174 documents
- •128 Of 174 documents
- •129 Of 174 documents
- •130 Of 174 documents
- •131 Of 174 documents
- •132 Of 174 documents
- •133 Of 174 documents
- •134 Of 174 documents
- •135 Of 174 documents
- •136 Of 174 documents
- •137 Of 174 documents
- •138 Of 174 documents
- •139 Of 174 documents
- •140 Of 174 documents
- •141 Of 174 documents
- •142 Of 174 documents
- •143 Of 174 documents
- •144 Of 174 documents
- •145 Of 174 documents
- •146 Of 174 documents
- •147 Of 174 documents
- •148 Of 174 documents
- •149 Of 174 documents
- •151 Of 174 documents
- •§ 4.2 Time of Performance Indefinite-Promises of ''Permanent'' Employment-At Will Employment
- •152 Of 174 documents
- •§ 4.3 Indefiniteness of Price or Terms of Payment-Money as a Commodity
- •153 Of 174 documents
- •§ 4.4 Agreed Methods of Determining the Price or Amount
- •154 Of 174 documents
- •§ 4.5 N1 Reasonable Price-Quasi-Contractual Remedy After Performance
- •155 Of 174 documents
- •§ 4.6 Uncertainty of Subject Matter to Be Exchanged for Price; Requirements and Output Contracts
- •156 Of 174 documents
- •§ 4.7 Effect of Subsequent Verbal Clarification or Action by the Parties
- •157 Of 174 documents
- •§ 4.8 Subsequent Action May Create a Quasi Contract
- •158 Of 174 documents
- •§ 4.9 Mistake-Difficulty and Complexity of the Subject
- •159 Of 174 documents
- •§ 4.10 Mistake as to the Words Used, or as to the Meaning Given to Words and Expressions
- •160 Of 174 documents
- •§ 4.11 Mistake in Transmission of Messages
- •161 Of 174 documents
- •§ 4.12 Objective and Subjective Theories
- •162 Of 174 documents
- •§ 4.13 Mutual Assent-''Meeting of the Minds''
- •163 Of 174 documents
- •§ 4.14 Auction Sales-Offers to Sell and to Buy
- •164 Of 174 documents
- •165 Of 174 documents
- •166 Of 174 documents
- •167 Of 174 documents
- •168 Of 174 documents
- •169 Of 174 documents
- •170 Of 174 documents
- •171 Of 174 documents
- •172 Of 174 documents
- •173 Of 174 documents
- •174 Of 174 documents
§ 1.13 What Is a Promise?
[Go To Supp]
The term ''promise'' must continually be used in any statement of the law of contracts. The act constituting an offer and the act constituting an acceptance may each consist in a promise. One of the most common definitions of the term ''contract'' itself is that it is a promise directly or indirectly enforceable at law. A definition of the term ''promise'' is, therefore, suggested as follows: A promise is an expression of commitment to act in a specified way, or to bring about a specified result in the future, or to take responsibility that the result has occurred or will occur, communicated in such a way that the addressee of the expression may justly expect performance and may reasonably rely thereon.
The definition of the Restatement of Contracts (Second) § 2(1) is: ''A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made.'' This definition is less comprehensive than the definition herein or that contained in the first Restatement of Contracts.n1 It is, however, fleshed out by definitional material in its comments and it is believed that its definition is not substantially in conflict with this treatise. Definition of promise in terms of ''commitment'' provides a useful metaphor. The term ''commitment'' preserves its core meaning in the phrases, ''the judge committed the prisoner to Attica,'' and ''the traveller committed the luggage to the baggage-handler.'' A promise hands over a bit of the promisor's freedom to the promisee.
It should be observed that the express words used in making a promise do not always specify conduct on the part of the promisor as the object of expectation by the promisee. Thus, if A promises B that C will not disclose a trade secret, B's ultimate goal is conduct on the part of C, and is not in terms conduct on the part of the promisor, A.n2 It is believed, however, that A is promising and that B is being led to expect conduct on the part of A that will be sufficient to induce the desired non-disclosure on the part of C. If conduct on A's part sufficient to attain this purpose turns out to be impossible or unsatisfactory then it is full indemnification by A that is expected, inasmuch as A has taken responsibility for C's conduct with respect to the trade secret.n3
In order to constitute a promise, the expression of intention by the promisor is not required to be in words. It may be made by the use of sign language or by any other conduct that under the existing circumstances has a promissory meaning. Promises may be tacit, implied, or inferred, as well as express. If a person has reason to know that his or her words or other conduct may reasonably cause another to believe that a promise is being made and such belief actually results, a promise has been made even though the speaker or writer of the words does not intend to convey such a meaning.n4 For example, although both folklore and philosophy distinguish between promises and threats, there is no doubt that language intended to menace, reasonably, in context, can be understood to be promissory.n5
Legal Topics:
For related research and practice materials, see the following legal topics:
Contracts LawFormationOffersGeneral OverviewContracts LawConsiderationEnforcement of PromisesGeneral OverviewContracts LawConsiderationGeneral Overview
FOOTNOTES:
(n1)Footnote 1. The definition accepted by Restatement, Contracts, § 2, is as follows:
''(1) A promise is an undertaking, however, expressed, either that something shall happen, or that something shall not happen, in the future.
''(2) Words which in terms promise the happening or failure to happen of something not within human control, or the existence or non-existence of a present or past state of facts, are to be interpreted as a promise or undertaking to be answerable for such proximate damage as may be caused by the failure to happen or the happening of the specified event, or by the existence or non-existence of the asserted state of facts.''
U.C.C. § 3-102(1)(c) has a definition of promise in the context of commercial paper. ''A 'promise' is an undertaking to pay and must be more than an acknowledgment of an obligation.'' Its limited purpose is discussed in official comment 2 to the section.
This section is quoted in Cain v. Allen Electric & Equipment Co., 346 Mich. 568, 78 N.W.2d 296, 301 (1956) . A corporate board adopted a resolution with respect to ''severance pay.'' This was held to be an offered promise, accepted by the employee's continuing to serve for the prescribed period.
In Granfield v. Catholic University, 530 F.2d 1035, 1040 (D.C.Cir.1976) , cert. denied, 429 U.S. 821 , the court held that amorphous statements, expressed goals, and (stated) aims do no constitute promises.
''A promise is a declaration by any person of his intention to do or to forbear from anything at the request or for the use of another. A proposal when accepted becomes a promise.'' This is an attempt to give ''promise'' a legal meaning that differs from its ordinary meaning. Finlay v. Swirsky, 103 Conn. 624, 632, 131 A. 420, 423 (1925) .
In Cederstrand v. Lutheran Brotherhood, 263 Minn. 520, 117 N.W.2d 213 (1962) , there is a long and intelligent discussion of ''promise.'' The court said: ''we must take care to distinguish between statements meant to express merely present intention and those meant to give an assurance as to a future event.'' The evidence in this case is reported in great quantity. It is not improbable that some courts would have held that it was sufficient to support the jury's verdict finding a promissory intention by inference therefrom. But this treatise does not dissent from the court's decision that the many statements and conduct of the defendant's officers indicated nothing more than expressions of general policy and intention, and that the plaintiff's own conduct indicated that she had not herself interpreted their words as expressing a promise of the kind on which her suit was based.
In Cabaud v. Federal Ins. Co., 37 F.2d 23 (2d Cir.1930) , the court held that an application for insurance on a vessel ''for account of lienors'' was not a promise (or a ''promissory warranty'') by the applicant that the proceeds should go to discharge liens and not otherwise. The court said: ''a declaration that the policy was for the benefit of the lienors, even though that be construed as meaning that all the proceeds would go to them, was not necessarily a promise to the underwriter, for a promise is an assurance, an 'undertaking,' Restatement of the Law of Contracts, § 2(1). To be such the hearers must understand that they may rely upon it; humans say much about future events that does not commit them. Ordinarily the hearers must have an interest in the fulfillment of what is said; otherwise, it will be seldom, if ever, that they can suppose it directed to them, or intended to be the basis for their conduct.''
See, also:
U.S. - E.I. Du Pont de Nemours & Co. v. Claiborne-Reno Co., 64 F.2d 224 (8th Cir.1933) , where the court's sound discussion of promise is combined with a retrograde application of the doctrine of consideration.
Conn. - Shelly v. Bristol Sav. Bank, 63 Conn. 83, 87, 26 A. 474, 19 L.R.A. 599 (1893) .
Ky. - Hoskins v. Black, 190 Ky. 98, 226 S.W. 384 (Ky.App.1920) .
N.J. - Esslinger's Inc. v. Alachnowicz, 68 N.J.Super. 339, 172 A.2d 433 (1961) . The court held that a dealer's words, asserted to be a promise of a ''lifetime'' distributorship agency, were intended only as a statement of ''intention.''
(n2)Footnote 2. See Tode v. Gross, 127 N.Y. 480, 28 N.E. 469 (1891) ; also Sinclair Refining Co. v. Jenkins Petroleum Process Co., 99 F.2d 9 (1st Cir.1938) , where the defendant contracted to induce its employees to make applications for patents and to assign them to the plaintiff.
(n3)Footnote 3. See Wilson, Can One Promise to Love Another?, 64 Philosophy 557 (1989).
(n4)Footnote 4. Restatement, Contracts, § 5: ''... a promise in a contract must be stated in such words either oral or written, or must be inferred wholly or partly from such conduct, as justifies the promisee in understanding that the promisor intended to make a promise.''
This section is substantially preserved but reworded in Restatement of Contracts (Second) § 4: ''A promise may be stated in words either oral or written, or may be inferred wholly or partly by conduct.''
See Chapter 25 dealing with Implication.
In Barcroft Woods, Inc. v. Francis, 201 Va. 405, 111 S.E.2d 512 (1959) , a contract for the sale of a lot provided: ''It is further understood that the lake is to be cleaned out up to lot 685 by Barcroft Lake Shores Inc.,'' a third party that owned the marshy land. This provision was held to be a promise by the seller that the third party would turn the marsh into a lake.
(n5)Footnote 5. In East Providence Credit Union v. Geremia, 103 R.I. 597, 239 A.2d 725 (1968) , the financing institution wrote the borrower as follow: ''If we are not notified of a renewal policy within ten days, we shall be forced to renew the policy for you and apply this amount to your loan.'' This dunning letter was deemed to be a promise upon which the borrower could rely.
Conversely, in Centric Corp. v. Morrison-Knudsen Co., 1986 OK 83, 731 P.2d 411 (Okl.1986), a take-it-or-leave-it offer of settlement of $1.4 million, together with other factors, was deemed a wrongful threat and a predicate for the application of the doctrine of duress.