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The Elements of a Contract

Chapter 27 concerns the elements of a contract. Contracts consist in large part of expressions, that is, manifestations consisting of words, acts, or both, which are either communicated by an addressor to an addressee or jointly produced by two (or occasionally more) contracting parties. It is sometimes assumed that where contractual expressions are embodied in a single writing the writing is the contract. That assumption is incorrect because contracts almost invariably include a number of additional elements—in particular, the implications of the parties’ expressions and any relevant usage, course of dealing, and course of performance. The context and purpose of a contract are not, strictly speaking, elements of a contract, but bear on its interpretation.