Definition: A contract is a legally binding agreement that creates obligations between parties. Its basic requirements include legally capable parties, mutual assent, a lawful purpose, and consideration.
Example
A buyer promises to pay an agreed price, and a seller promises to convey the identified property, under a properly formed purchase agreement.
Keep the distinction clear
An agreement is not automatically an enforceable contract merely because someone calls it a deal. Formation requirements and any required writing still matter.
Related terms
Consideration · Mutuality of Consent (Mutual Assent) · Competent Parties (Contract Capacity)
Keep studying
Valid, Void, Voidable, and Unenforceable Contracts
References: Cornell LII: contract
Pronunciation (US): KON-trakt (capitals show stress)
Pronunciation reference: Merriam-Webster
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