Contract law regulates the day to day business of buying and selling goods or performing services.A contract is defined in law as an agreement between two parties with an offer, acceptance,and consideration. Jill and Joan now have a corporation—Sports Unlimited, Inc. Ed comes in and decides to buy a tent priced at $225. He offers $225 to Sports Unlimited, which accepts the offer by ringing it up on the cash register. The consideration is what is exchanged; that is, $225 and the tent. When the store accepts the price, there is a binding contract. Suppose a sign clearly in Ed’s view says “All returns must be made within thirty days with cash receipt.” This sign becomes part of the agreement.

If Ed brings the tent back twenty-nine days later, he can get his money back; if he brings it back thirty-one days later, it would be too late. Even though it is not stated by either party, if Ed used the tent on a camping trip, it would not be returnable. If, however, the tent leaked, it is not “fit for the purposes for which it was intended” and Ed could get his money back within a reasonable time. » Read more: Buying and Selling Goods