What is contract law & how does it work?

Contract law is a body of law that governs, enforces, and interprets agreements related to an exchange of goods, services, properties, or money. According to contract law, an agreement made between two or more people or business entities, in which there is a promise to do something in return for a gain or advantage, is legally binding.

What is considered a contract?

Consideration is the quid pro quo (something given or received for something else) between the contracting parties in the absence of which the law will not enforce the promise or promises made. Consider the following three “contracts”: Betty offers to give a book to Lou. Lou accepts.

What is a legal agreement contract?

A contract must refrain from contravening public policy to be legitimate. The goal of the legal agreement contract cannot be against the law, immoral, or in the interest of society as a whole. A contract that entails breaking the law or employing unethical practices is void. 2. All Parties Are Able To Consent