Contracts are mainly subject to legal and common (judicial) and private law (i.e.dem private contract). Private law first includes the terms of the agreement between the parties exchanging promises. This private right can repeal many of the rules otherwise established by state law. Legal broadcasting laws, such as the Fraud Act, may require certain types of contracts to be executed in writing and with special formalities in order for the contract to be enforceable. Otherwise, the parties can enter into a binding agreement without signing an official written document. For example, the Virginia Supreme Court in Lucy v. Zehmer, that even an agreement on a piece of towel can be considered a valid contract if the parties were both sane, and showed mutual consent and consideration. Not all promises are a promise to do anything. Sometimes it`s an illusory promiseThe Promisor has no consideration, as in “I`m going to paint your house in June when I want to.” where the terms of the contract really oblige the Promisor not to give up anything without suffering damage. For example, Lydia offers to pay Juliet $10 to mow Lydia`s lawn. Juliette promises to mow the lawn if she wants to. Does Juliet have the right? No, because Juliet has not suffered any legal prejudice; Her promise is illusory, for if she does nothing, she always falls into the literal text of her promise.
The doctrine that such good deals are unenforceable is sometimes referred to as a rule of reciprocity of commitment: if one party has not made a binding commitment, the other party is not bound. So if A keeps leases for $6,000 a month for one year and reserves the right to lay off B at any time (a termination option) and B agrees to work for a year, A hasn`t really promised anything; A is not bound by the agreement and B is not B. As mentioned above, taking into account the price set by the Promisor for the promise given. price, in this sense, is used in a broad sense; it must not be monetary, or even monetary; While it requires a certain “disadvantage” in the name of promise, this disadvantage may take the form of a renunciation of an otherwise granted freedom (for example, the promise. B to quit smoking or study every Saturday night) and the Promisor does not need to get any tangible benefits.