Contract

A legally enforceable exchange of promises bewteen two or more parties. The contract, if disputed is enforceable by a court of law, and the basis of the contract must be upon the mutual agreement or general agreement between the parties in the contract. The contract must be legal in the broad sense of the law governing contracts, which is Contract Law. The decided upon agreement should not be of a trifling or impossible nature, as this will nullify the agreement, whilst the parties entering into this agreement must have the necessary capacity to be party to this agreement.

This agreement, as stated above, is enforced by Contract Law, and a breach of contract, which is a dishonouring of the agreed upon terms is enforceable according to this legal branch. Contracts can be made via written or oral agreements, and normally pertain to the mutual agreement of seller and purchaser as in the case of a house or apartment. A simplified definition of a contract was provided by Sir John William Salmond where he stated ‘an agreement creating and defining the obligations between two or more parties.’