Definition

A contract is a voluntary agreement whereby the parties consent to obligations or authority being enforced upon them.

Discussion

Overview

Breaking a contract is one of the eight forms of aggressing and, therefore, a breach of the Legal Principle.

Contracts can be, and often are, delegated. Individuals delegate authority to the decision-makers of corporations, sporting clubs and community groups, for example, to enter into contracts.

In the case of a corporation, many national laws consider the company as a “legal person”, meaning the law treats the company as a distinct entity to the decision-makers or owners of the company.

Particulars

A contract is an enforceable, genuine agreement between competent adults involving their property or rights.

A contract must be honored. A deal is a deal.

The essence of an enforceable contract requires a genuine meeting of the minds, which means that all parties to a contract have knowingly, voluntarily, and consensually reached an informed agreement that they each understand and desire after due consideration. This meeting of the minds is the contract, while the writing is merely the memorandum of that legitimate agreement.

A contract can be implied in certain specific circumstances, such as medical services provided in an emergency to an unconscious person.