What is a legal contract?

What defines a contract? A contract is a formal, legally binding agreement: an agreement between parties, creating mutual obligations that are enforceable by law. Legal professionals must ensure that the contracts they draft are not only well-constructed but also form an enforceable contract—a formal, legally binding agreement.

What is contract law & how does it work?

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.

What makes an agreement a contract?

For an agreement to be a contract, it must meet certain requirements. For an agreement to be considered a valid contract under contract law, it must consist of an offer, acceptance, consideration, and intent of both parties to create the contract. An offer is made when one person asks another person to enter into a contract.