Legal Contract Definition
A contract is a legally binding agreement between two or more parties. A contract can be oral or written, and it can be enforceable by law. The main purpose of a contract is to set out the terms of an agreement between the parties, so that they can understand their rights and obligations. Contracts can be used for a variety of purposes, including buying and selling goods, hiring staff, or providing services.
When you enter into a contract, you are agreeing to certain terms and conditions. These terms and conditions are known as the ‘terms’ of the contract. The terms of a contract can be negotiated between the parties, or they may be set out in a written document such as a standard form contract. Contracts can also be created by law, such as when you buy insurance or sign a lease agreement.
It’s important to read over the terms of any contract before you sign it. This will help you understand what you are agreeing to. If there is anything you don’t understand, ask questions or get clarification before signing. Once you have signed a contract, you are legally bound by its terms and conditions. This means that if one party doesn’t uphold their end of the bargain, the other party can take legal action to enforce the contract.
