A contract is a promise made enforceable by law, usually because the beneficiary of the promise agreed to do something in return for it.
Explained in another way, contract is an agreement between two or more persons which creates an obligation to do or not to do a particular thing. A legally enforceable agreement between two or more competent parties is made either orally or in writing.
The three basic elements of contract formation are:
- an offer
- legal consideration
Also, there must not be any defenses to contract formation.
A written contract concerning future performance usually includes these provisions:
Recitals of intent (usually in the form of "Whereas" clauses)
Term for the contract
Duties of each party
Rights of termination
Rights if there is a default
Limitation of Liability
Choice of law and jurisdiction for disputes
Disclaimer of Agency or employment relation