A contract is an agreement entered into between parties that creates, modifies, or terminates legal rights and obligations.
Simply put, a contract is a promise that the parties voluntarily agree to and whose performance is protected by law.
Essential elements of a contract:
Parties – who is entering into the agreement
Subject matter of the agreement – what the parties are agreeing upon
Will of the parties – free and informed consent
Obligations and rights – who does or receives what
Legality – the contract must not contradict the law
Form of the contract:
Written (the most common and secure)
Oral (permissible in some cases, but difficult to prove)
Examples of contracts:
Sale and purchase agreement
Lease agreement
Service contract
Employment contract
