A contract is an exchange of promis

A contract is an exchange of promises between two or more people for a particular purpose. It is a legally enforceable agreement that generates a commitment to do or not to do something. The central part of most contracts is a set of shared promises. The promises are made by the parties that describe the privileges and obligations of the parties. The term 'party' can mean an individual, company or corporation. No matter what kind of contract you take, having an understanding of contract law is a central part to establish sound business agreements that will be lawfully enforceable in the event when a clash arises.