what is a contract

A contract is an agreement between two or more parties that creates mutual obligations that are enforceable by law. It specifies certain legally enforceable rights and obligations pertaining to the parties involved. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. The activities and intentions of the parties entering into a contract may be referred to as contracting. The basic elements required for a contract to be legally enforceable are mutual assent, consideration, and acceptance between the parties involved. Contracts are widely used in commercial law and form the legal foundation for transactions across the world. They are promises that the law will enforce. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. Contracts may be bilateral or unilateral, and they may be made orally or even by conduct. Nonetheless, a valid contract may generally be made orally or even by conduct. Contracts are important because they serve as a record of rights, responsibilities, and obligations. They are a way of formalizing a relationship between businesses, as well as outlining how each party will work together and how each partys duties and responsibilities will be tracked and enforced.