What Is a Contract?

An agreement between parties that creates legally enforceable rights and obligations when the applicable legal requirements are satisfied.

What Does Contract Mean?

A contract is a bargain between parties that the law is prepared to enforce. The terms may be written, oral or partly implied, provided the applicable legal requirements are satisfied.

Why It Matters

Contracts are the foundation of most business relationships. Understanding what was agreed, and what the law requires for enforcement, helps parties protect their position and respond to disputes.

Related Information

Related legal terms: Breach of Contract, Termination Clause, Indemnity

Related practice area: Corporate & Commercial Law →

Dealing With a Related Matter?

This explanation is a general starting point. If the term matters in a specific situation you are facing, a conversation about your facts can help you decide the right next step.

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This definition provides general information and does not constitute legal advice. Laws change, and their application depends on the facts of a matter. For advice on your specific situation, consult a qualified lawyer.