The General Assembly,
Reaffirming the freedom to contract,
Creating a system of requirements that define a contract that applies to the international sale of goods,
Allowing national governments to create more stringent contract formation procedures,
Hereby,
- Defines:
- "contract" as a legally enforceable agreement,
- "offer" as a definite statement of willingness to enter a bargained agreement should certain conditions be met,
- "acceptance" as a definite statement of willingness to comply with the terms of an offer.
- Encourages nations to use written contracts as opposed to oral contracts.
- Requires a contract to be recorded in writing in cases of contracts in circumstances of:
- marriage,
- obligations that could conceivably require more than a year to perform,
- transfer of real estate,
- and when parties assume debt responsibility.
- Requires that a valid acceptance contains exactly the same details as an offer. An acceptance that contains modifications is a rejection of the offer and a counter-offer.
- Mandates that the signer of a contract becomes bound to it at the moment of signing.
- Requires that, for a contract to be formed, the parties must reach mutual assent through an offer and an acceptance.
- Clarifies that an offer distributed by advertisement does not constitute an offer, but an indication of preparedness to negotiate a deal.
- Clarifies that an offer is only effective when it has reached the offeree and that an acceptance is only effective when it has reached the offeror. A late acceptance is effective if without delay the offeror informs the offeree.
- Allows for an offer to be revoked if the revocation reaches the offeree before acceptance.
- Grants the oferree the ability to withdraw if the withdrawal reaches the offeror before the time that acceptance becomes effective.
- Allows for contracts to exist, according to the judgement of national government, when parties have not exchanged words of agreement, but their conduct indicates that an agreement exists.
- Removes the obligations of a contract when:
- The contract is accepted because of violence, or threat against the person. The threat must be illegal, have no reasonable alternative and directly affect the contract,
- The signer is unable to understand the purpose of the document because of blindness, some other disability, or illiteracy, which has caused a fundamental mistake that makes the document radically different from one intended to be signed.