A 'CONTRACT' is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of those at a future date. The activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or equitable remedies such as specific performance or rescission.A binding agreement between actors in international law is known as a treaty.
Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured. Like other areas of private law, contract law varies between jurisdictions. In general, contract law is exercised and governed either under common law jurisdictions, civil law jurisdictions, or mixed-law jurisdictions that combine elements of both common and civil law. Common law jurisdictions typically require contracts to include consideration in order to be valid, whereas civil and most mixed-law jurisdictions solely require a meeting of the minds between the parties.
Within the overarching category of civil law jurisdictions, there are several distinct varieties of contract law with their own distinct criteria: the German tradition is characterised by the unique doctrine of abstraction, systems based on the Napoleonic Code are characterised by their systematic distinction between different types of contracts, and Roman-Dutch law is largely based on the writings of renaissance-era Dutch jurists and case law applying general principles of Roman law prior to the Netherlands' adoption of the Napoleonic Code. The UNIDROIT Principles of International Commercial Contracts, published in 2016, aim to provide a general harmonised framework for international contracts, independent of the divergences between national laws, as well as a statement of common contractual principles for arbitrators and judges to apply where national laws are lacking. Notably, the Principles reject the doctrine of consideration, arguing that elimination of the doctrine "bring[s] about greater certainty and reduce litigation" in international trade. The Principles also rejected the abstraction principle on the grounds that it and similar doctrines are "not easily compatible with modern business perceptions and practice".
Contract law can be contrasted with tort law (also referred to in some jurisdictions as the law of delicts), the other major area of the law of obligations. While tort law generally deals with private duties and obligations that exist by operation of law, and provide remedies for civil wrongs committed between individuals not in a pre-existing legal relationship, contract law provides for the creation and enforcement of duties and obligations through a prior agreement between parties. The emergence of quasi-contracts, quasi-torts, and quasi-delicts renders the boundary between tort and contract law somewhat uncertain.
An 'AGREEMENT' is a mutual understanding or arrangement between two or more parties. It forms the basis for a contract, which is a legally enforceable agreement. For an agreement to be legally binding, it generally requires elements like offer and acceptance, consideration, and an intention to create legal relations.
Here's a more detailed breakdown:
Key aspects of agreement in law:
•Offer and Acceptance:
One party proposes terms (the offer), and the other party agrees to those terms (the acceptance).
•Consideration:
Each party must provide something of value, like a promise, good, or service, in exchange for what they receive.
•Intention to Create Legal Relations:
The parties must intend for their agreement to be legally binding, meaning they can be held accountable in a court of law.
•Enforceability:
An agreement that meets these requirements can be considered a contract and is legally enforceable.
Types of Agreements:
•Express Contract: Terms are explicitly stated, either orally or in writing.
•Implied Contract: Terms are inferred from the conduct of the parties, suggesting an agreement was intended, even without explicit communication.
•Unilateral Contract: One party makes a promise in exchange for an action by the other party.
•Bilateral Contract: Both parties exchange promises.
Gentlemen's Agreement: A non-binding agreement based on mutual trust and honor, often used in situations where legal enforceability is not desired.
•Shareholders' Agreement: An agreement among shareholders of a company outlining their rights and obligations.
•Collective Agreement: An agreement between an employer and a trade union representing employees.
Agreements in different contexts:
•Contract Law: Agreements are the foundation of contract law, providing the framework for legally binding transactions.
•Real Estate: Agreements are crucial in property transactions, like sales or leases.
•International Law: Agreements between nations are formalized as treaties. In essence, an agreement is the starting point for a contract, but not all agreements are contracts. A contract requires enforceability under the law, while an agreement may or may not be legally binding.