Restatement of Contracts 86: Understanding the Basics
Restatement of Contracts 86, also known as the Restatement (Second) of Contracts, is a legal document that provides guidance on contract law. The document is maintained by the American Law Institute and has been widely adopted by courts across the United States.
The Restatement (Second) of Contracts is a comprehensive document that provides guidance on a wide range of contract law issues. The document covers everything from the formation of contracts to the termination of contracts and everything in between. The Restatement is considered one of the most authoritative sources on contract law in the United States.
One of the key features of the Restatement (Second) of Contracts is its focus on the principles of good faith and fair dealing. The document emphasizes that contracts should be interpreted in a way that promotes fairness and equity between the parties involved. This means that parties should act in good faith when entering into and performing contracts, and that the terms of the contract should be interpreted in a way that honors the parties’ intentions and expectations.
Another important feature of the Restatement (Second) of Contracts is its emphasis on the concept of consideration. Consideration refers to the exchange of something of value between the parties involved in a contract. The Restatement emphasizes that consideration is essential to the formation of a contract, and that contracts that lack consideration may not be enforceable.
The Restatement (Second) of Contracts also provides guidance on the interpretation of contracts. The document emphasizes that contracts should be interpreted in a way that promotes the parties’ intentions and expectations. This means that the language of the contract should be given its ordinary meaning, and that extrinsic evidence should be considered only if the contract is ambiguous or unclear.
In addition to providing guidance on the principles of contract law, the Restatement (Second) of Contracts also provides guidance on a variety of specific contract law issues. For example, the document provides guidance on the enforceability of contracts that are signed under duress or coercion, the requirements for modifying or terminating contracts, and the remedies available to parties who have been harmed by a breach of contract.
Overall, the Restatement (Second) of Contracts is an important document that provides guidance on a wide range of contract law issues. Whether you are a lawyer, a business owner, or simply someone who is interested in understanding the basics of contract law, the Restatement is an essential resource to have.