This article introduces a novel process-based teaching methodology called the legal learning cycle and utilizes a contracts case study to illustrate this learning process in action. The legal learning cycle is an active learning resource and approach that engages students, demonstrates relational contracting principles, and exposes students to various legal and extra-legal aspects of contracts, negotiations, and the contracting process. The contracting process is composed of term sheet negotiations, contract drafting, responding to anticipatory breach, breach, failure to cure, litigation, and reaching a negotiated settlement via mediation.