Contract Law

Definition

This is a body of law that governs making, enforcing, and breaking agreements between parties. It ensures all parties involved in a contract fulfill their obligations as promised.

Related terms

Breach of Contract: This occurs when one party in a contract fails to fulfill their agreed-upon obligations.

Consideration: Something of value exchanged between parties during a contract; it's what each party gets out of the agreement.

Enforceability: A term referring to whether or not a court would uphold the terms of a contract.