CIPP/US Study Guide
Chapter 2: U.S. Legal Framework

Contract Law and Privacy Notices

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A contract needs offer, acceptance, and consideration. Privacy obligations often live in vendor contracts, and a privacy notice can itself be a contract if a consumer gives data relying on the company's promise.

A contract is a legally binding agreement enforceable in court and may cover data usage, data security, breach notification, jurisdiction, and damages. A company often contracts with service providers requiring them to implement privacy and security protections when processing personal data.

  • Offer - proposed bargain; a counteroffer ends the original offer
  • Acceptance - assent that complies with and is communicated back per the offer's terms
  • Consideration - the bargained-for exchange; without it there is no contract
No consideration, no contract

An agreement without consideration is not a contract. Even an otherwise valid contract can be unenforceable for reasons such as misrepresentation or conflict with public policy.

A privacy notice as a contract

If a consumer provides data to a company based on the company's promise to use it per the notice, the privacy notice may itself be a contract.

Key terms - quick answers

What is “Offer”?
Proposed language to enter a bargain, communicated to another and open until accepted, rejected, retracted, or expired; a counteroffer ends the original offer.
What is “Acceptance”?
The assent by the offeree, complying with the offer's terms and communicated to the offeror.
What is “Consideration”?
The bargained-for exchange (money, property, or services); an agreement without consideration is not a contract.
What is “Breach of contract”?
When one party fails to meet its contractual obligations, allowing the injured party to sue for damages or enforcement.

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