What is the purpose of contract law?

Contract law is a body of law that governs, enforces, and interprets agreements related to an exchange of goods, services, properties, or money. According to contract law, an agreement made between two or more people or business entities, in which there is a promise to do something in return for a gain or advantage, is legally binding.

How does contract law differ from other forms of law?

The first, and most famous, holds that contract law enforces the basic moral duty to keep promises. A related though distinct view presents contract law as enforcing a duty not to harm others. A third conceives of the law not as enforcing parties’ non-legal duties, but as promoting efficient investment and exchange.

What are the fundamentals of contract law?

Contract law governs the legality of agreements made between two or more parties when there is an exchange of some sort intended to take place. In nearly all business transactions, contracts are made. Such contracts, even if made by a verbal agreement, are legally enforceable, as an obligation to fulfill the terms of the agreement has been created.