What is a a Contract?
A contract is a written or oral agreement between two or more parties. One party makes a promise to perform a certain act in exchange for the other party’s promise to perform another act, i.e. one party promises to make a payment in exchange for another party’s promise to provide a service or sell a good. Not all contracts are valid and not all contracts are enforceable. To be enforceable, the law requires certain contracts to be in writing, and to be valid, the law requires that certain formalities are included within the contract.