Restatement Second, Contracts

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§ 20

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Effect of misunderstanding
1. There is no manifestation of mutual assent to an exchange of the parties attach materially different meanings to their manifestations AND
(a) neither party knows OR has reason to know the meaning attached by the other party; OR
(b) each party knows or has reason to know the meaning attached by the other.
2. The manifestations of the parties ARE operative in accordance with the meaning attached to them by one of the parties if
(a) that the party doe snot know of any different meaning attached by the other; AND the other knows the meaning attached by the first party; OR
(b) that party has no reason to know of any different meaning attached by the other, and the other party has reason to know the meaning attached by the first party.

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§ 17

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Requirement of a bargain
1. Except as stated in SS2, 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 under the rules stated in §§ 82-94.

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§ 19

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Conduct as a manifestation of assent
1. The manifestation of assent may be made wholly or party 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 conduct and knows OR has reason to know that the other party may infer from his conduct that he assents.
3. The conduct of a party may manifest assent even though he does not in fact assent. In such cases a resulting contract may be voidable because of fraud, duress, or other invalidating cause.

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§ 21

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Intention to be legally bound
Neither real nor apparent intention that a promise be legally binding is essential to the formation of a contract, but a manifestation of intention that a promise shall not affect legal relations may prevent the formation of a contract.

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§ 71

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Requirement of exchange - types
1. To constitute consideration, a performance or a return promise much be bargained for.
2. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.

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§ 231

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Criterion for determining when performances are to be exchanged under an exchange of promises
Performances are to be exchanged under and exchange of promises if each promise is at least part of the consideration for the other than the performance of each promise is to be exchanged at least in part for the performance of the other.