What is considered a contract?

A contract is defined as a promise or set of promises that the law will enforce, forming an agreement between parties. This definition captures the essential elements of a contract, including the mutual consent of the parties involved, the intention to create legal obligations, and the enforceability of the promises made.

In the context of a legally binding agreement, the relationship and expectations established through the promises can lead to consequences if one party fails to fulfill their end of the agreement. This means that a contract must involve at least two parties who agree to specific terms, thereby creating rights and obligations that are recognized by law.

Understanding this definition is crucial because it underscores the importance of mutual consent and the legal enforceability of agreements in real estate and other contexts. This clarity on what constitutes a contract differentiates it from other arrangements or informal agreements that may lack legal significance.