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Glossary » Contract

Contract

A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. A contract is lawfully enforceable because it meets the legal requirements needed for compliance. Usually, a contract can involve exchanging goods, services, money, or promises (of any of these) with another party who agrees to abide by what you want them to do – so long as they receive something in return for agreeing to uphold those responsibilities too.

When someone breaks one of these agreements without following through on what they promised; this becomes known as breach of contract. If you were injured while breaching someone else’s contractual duty; you would be awarded damages from court proceedings if this was agreed upon beforehand. In some civil laws, contracts are classified as a branch of obligations/duties/rights depending on where you’re from (or your own personal preference).