A contract is a legally binding agreement between two or more parties. It creates enforceable rights and duties, commonly involving the exchange of goods, services, money, property, or promises to act later.
In common-law systems, contract formation typically involves an offer, acceptance, consideration, and an intention to create legal relations. A contract can be written, spoken, or implied by conduct, although some transactions—such as certain land deals—must satisfy special formalities. Civil-law systems may form contracts through mutual consent without requiring the common-law doctrine of consideration.
If one party breaches the agreement, the injured party may seek remedies such as monetary damages. Courts may also order specific performance, rescission, or another equitable remedy when money alone is inadequate.
A contract is not the same as a statute or regulation: those are rules made by a legislature or government authority. A tort, by contrast, is generally a civil wrong created by law rather than by the parties’ prior agreement.