section to the issue of contracts. Contracts may or may not be written, and are based on promises. A promise is a commitment or undertaking that something will or will not happen at some future time. The person making the promise is the promisor and the person to whom the promise is made is the promisee (157). A promise does not necessarily mean that a contract has been entered into, however. What distinguishes contractual promises from noncontractual promises are the consequences of failure to perform. A promisor who fails to perform a noncontractual promise incurs no legal liability. If a promise is contractual, the promisee is generally entitled to a contract remedy in the event of the promisor's nonperformance (breach). The most common remedy for breach of contract is an award of dollar damages.
Terms of a contract may be express or implied. If the terms are express, they are stated clearly, such as agreeing to sell a car for $2,000. If the terms are implied, they are not stated outright, such as taking an appliance to be repaired, but not sp
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