Chapter 7 - § 7.1 • DEFINITION

• Jurisdiction: Colorado

§ 7.1 • DEFINITION

A contract is an agreement between two or more persons or entities that consists of an offer, acceptance, and consideration.¹ An "offer" is "a manifestation by one party of a willingness to enter into a bargain."² "Acceptance" is "a manifestation of assent to the terms of the offer."³ Unless the offer specifies otherwise, a party may manifest assent "by promising to perform or by performing."⁴ "Consideration" is "a benefit received or something that is given up as agreed upon between the parties."⁵ It may consist "either in some right, interest, profit, or benefit accruing to one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by another party."⁶

A contract can be oral, written, partially oral and partially written, or inferred from conduct.⁷ If written, it need not be signed for the parties to be bound.⁸ After parties form a contract, they may modify it orally or in writing, but the modification itself requires an offer, acceptance, and consideration.⁹ Even if a written contract specifies that all modifications must be in writing, the contract may be modified by a subsequent oral agreement.¹⁰

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Notes:

^[1] CJI-Civ. 30:1 (CLE ed. 2018).

^[2] Indus. Prods. Int'l v. Emo Trans, Inc., 962 P.2d 983 (Colo. App. 1997) (citing Restatement (Second) of Contracts § 24 (1979)).

^[3] Id. (citing Restatement (Second) of Contracts § 32 (1981)).

^[4] Id.

^[5] CJI-Civ. 30:7 (CLE ed. 2018).

^[6] Compass Bank v. Kone, 134 P.3d 500, 502 (Colo. App. 2006) (citations omitted).

^[7] CJI-Civ. 30:2 (CLE ed. 2018); Restatement (Second) of Contracts § 4 (1981).

^[8] E-21 Eng'g, Inc. v. Steve Stock & Assocs., Inc., 252 P.3d 36, 39 (Colo. App. 2010).

^[9] CJI-Civ. 30:2 (CLE ed. 2018).

^[10] Agritrack, Inc. v. DeJohn Housemoving, 25 P.3d 1187, 1193 (Colo. 2001); Colo. Inv. Svs. Inc. v. Hager, 685 P.2d 1371, 1376-77 (Colo. App. 1984).