Unless a statute provides otherwise, a natural person has the capacity to incur 

only voidable contractual duties until the beginning of the day before the person's 

eighteenth birthday. 

(1) A person incurs only voidable contractual duties by entering into a transaction 

if by reason of mental illness or defect 

(a) he is unable to understand in a reasonable manner the nature and 

consequences of the transaction, or 

(b) he is unable to act in a reasonable manner in relation to the transaction 

and the other party has reason to know of his condition. 

(2) Where the contract is made on fair terms and the other party is without 

knowledge of the mental illness or defect, the power of avoidance under Subsection 

(1) terminates to the extent that the contract has been so performed in whole or in 

part or the circumstances have so changed that avoidance would be unjust. In such a 

case a court may grant relief as justice requires.

(1) Except as stated in Subsection (2), the formation of a contract requires a 

bargain in which there is a manifestation of mutual assent to the exchange and a 

consideration. 

(2) Whether or not there is a bargain a contract may be formed under special 

rules applicable to formal contracts or under the rules stated in §§ 82-94.

1. The manifestation of assent may be made wholly or partly by written or spoken words or by other acts or by failure to act.

2. The conduct of a party is not effective as a manifestation of his assent unless he intends to engage in the confuct and knows or has reason to know that the other party may infer fom his conduct that he assents.

3. The confuct of a party may manifest assent even though he does not in fact assent. In such a case a resulting contract may be voidable because of fraud, duress, mistake, or other invalidating cause.

An offer is the manifestation of willingness to enter into a bargain, so made as to 

justify another person in understanding that his assent to that bargain is invited and 

will conclude it. 

An option contract is a promise which meets the requirements for the formation 

of a contract and limits the promisor's power to revoke an offer.

A manifestation of willingness to enter into a bargain is not an offer if the person 

to whom it is addressed knows or has reason to know that the person making it does 

not intend to conclude a bargain until he has made a further manifestation of assent. 

[The predecessor of § 26 is § 25 of the First Restatement. It reads as follows: 

(1) The manifestation intention of the offeror determines the person or person in whom is created a power of acceptance.

(2). An offer may create a power of acceptance in a specified person or in one or more of a specified group or class of persons, acting separately or together, or in anyone or everyone who makes a specified promise or renders a specified performance.

(1) Even though a manifestation of intention is intended to be understood as an 

offer, it cannot be accepted so as to form a contract unless the terms of the contract 

are reasonably certain. 

(2) The terms of a contract are reasonably certain if they provide a basis for 

determining the existence of a breach and for giving an appropriate remedy. (3) The 

fact that one or more terms of a proposed bargain are left open or uncertain may 

show that a manifestation of intention is not intended to be understood as an offer or 

as an acceptance.

§ 34. Certainty and Choice of Terms; Effect of Performance or 

Reliance

(1) The terms of a contract may be reasonably certain even though it empowers 

one or both parties to make a selection of terms in the course of performance. 

(2) Part performance under an agreement may remove uncertainty and establish 

that a contract enforceable as a bargain has been formed. 

(3) Action in reliance on an agreement may make a contractual remedy 

appropriate even though uncertainty is not removed.

Where an offer is made by advertisement in a newspaper or other general 

notification to the public or to a number of persons whose identity is unknown to the 

offeror, the offeree's power of acceptance is terminated when a notice of termination 

is given publicity by advertisement or other general notification equal to that given to 

the offer and no better means of notification is reasonably available.

An offeree's power of acceptance is terminated when the offeree or offeror dies 

or is deprived of legal capacity to enter into the proposed contract.

Unless additional requirements are prescribed by the particular statute, a 

contract within the Statute of Frauds is enforceable if it is evidenced by any writing, 

signed by or on behalf of the party to be charged, which 

(a) reasonably identifies the subject matter of the contract, 

(b) is sufficient to indicate that a contract with respect thereto has been 

made between the parties or offered by the signer to the other party, and  

(c) states with reasonable certainty the essential terms of the unperformed 

promises in the contract.

The memorandum may consist of several writings if one of the writings is signed 

and the writings in the circumstances clearly indicate that they relate to the same 

transaction.

§ 174. When Duress by Physical Compulsion Prevents Formation of 

a Contract

If conduct that appears to be a manifestation of assent by a party who does not 

intend to engage in that conduct is physically compelled by duress, the conduct is not 

effective as a manifestation of assent. 

(1) A promise or other term of an agreement is unenforceable on grounds of 

public policy if legislation provides that it is unenforceable or the interest in its 

enforcement is clearly outweighed in the circumstances by a public policy against the 

enforcement of such terms. 

(2) In weighing the interest in the enforcement of a term, account is taken of 

(a) the parties' justified expectations, 

(b) any forfeiture that would result if enforcement were denied, and 

(c) any special public interest in the enforcement of the particular term. 

(3) In weighing a public policy against enforcement of a term, account is 

taken of 

(a) the strength of that policy is manifested by legislation or judicial 

decisions 

(b) the likelihood that a refusal to enforce the term will further that policy, 

(c) the seriousness of any misconduct involved and the extent to which it 

was deliberate, and 

(d) the directness of the connection between that misconduct and the term.