Contract Legal Meaning and Definition

Here is a simplified definition of the legal term Contract.

Contract (noun)

A legal agreement between two or more parties (people, businesses, or organizations) where each party promises to do something for the other, such as provide a service or product. Each party must communicate their agreement to the terms ("offer and acceptance"). The contract must be in writing for it to become enforceable by law, creating obligations for each party involved in the agreement. If one party fails to fulfill their promise ("breaches the contract"), they may face legal consequences.