Opinion ID: 2081879
Heading Depth: 1
Heading Rank: 5

Heading: The Release Documents Constituted a Valid and Enforceable Contract

Text: We agree with the motion justice that the releases constituted a valid and enforceable bilateral contract between the plaintiffs on the one hand and Lizotte and AIG on the other. [8] As the motion justice aptly noted, our opinion in Filippi v. Filippi, 818 A.2d 608, 624 (R.I.2003), reiterated one of the basic principles of contract lawnamely, that a bilateral contract requires mutuality of obligation, which is achieved when both parties are bound legally by the making of reciprocal promises. We also noted in that opinion that [m]utuality of obligation fulfills the consideration requirement of contracts. Id. We further agree with the following statement by the motion justice: [T]he mere fact that there was no cashing of the check doesn't, in the Court's mind, affect the enforceability of that contract, because what was bargained for was a release in exchange for a payment. The release was signed and executed, and the payment was made. Therefore, the fact that plaintiffs subsequently sought to return the $100,000 payment that had been delivered to them is irrelevant as a matter of contract law. It is absolutely clear that a valid and enforceable contract was formed at the time the parties to the releases exchanged the promises described above.