ABSTRACT
A bilateral executory agreement. It consists of an exchange of promises; the exchange is deliberately carried through by a process of offer and acceptance, with the intention of creating a binding deal. When the offer is accepted, the agreement is consummated, and a contract comes into existence before anything is actually done by the parties. No performance is required ... The contract is binding because the parties intend to be bound ... When the contract is made, it binds each party to performance, or in default to a liability to pay damages in lieu. Prima facie, these damages represent the value of the innocent party’s disappointed expectations.1
