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Question: How is a Contract formed in  Pennsylvania?


In Pennsylvania, a contract is formed by offer  and acceptance. An offer is any outward  manifestation or gesture that suggests a  willingness to enter into an agreement  through some form of acceptance. An offer  can be accepted two ways: either by a return  promise or by an act. If, for example, I say: “I  will give you two hundred dollars if you deliver  to me your motorcycle.” Your act of  delivering the motorcycle will constitute  acceptance. In other instances, one party  exchanges one promise for another promise:  I promise not to sue you, if you promise not  to sue me. In this example, there is no “act”  that constitutes acceptance. Rather, the offer  can only be accepted through a return  promise.

Another key element of a contract is a  validating device, such as consideration: i.e.,  something of significance. If I say, I will give  you a million dollars if you do nothing. Then,  you do nothing. This has not created a  binding agreement because there is no  consideration for the original promise of  paying money. Contact one of our attorneys  to determine whether the circumstances in  your case rise to the level of an enforceable  contract.

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