Contract Adherence Definition
A contract is a legally binding agreement between two or more parties. The purpose of a contract is to establish the terms of an agreement, including what each party will do and what they are responsible for. A contract can be verbal or written, but most contracts are written.
A contract must have four essential elements to be valid: offer, acceptance, consideration, and intention to create legal relations. An offer is an expression of willingness to enter into a bargain, made with the intention that it will become binding when accepted. An acceptance is an unqualified assent to the terms of an offer. Consideration is something of value given by one party to another in exchange for something else of value. The fourth element, intention to create legal relations, shows that the parties intend for their agreement to be legally binding.
If a contract is breached, this means that one party has not fulfilled their obligations under the contract. Breach of contract can lead to legal action being taken by the other party.
