When building any structure — whether it's a skyscraper or a startup — you must first
begin with a plan and a foundation. From simple deals to complex partnerships,
businesses rely on contracts to establish the foundation of their professional relationships
while also supplying the agreed-upon procedures that govern those relationships. With a
contract, the parties involved establish how they will work together and how each party's
duties and responsibilities will be tracked and enforced.
Contracts are the foundational elements not just of every business, but of human
cooperation and society. Contracts are agreements that enable people, businesses, and
society to come together and collaborate towards their specific desires and needs. They
are official agreements that we can be enforced to follow and are enforceable by law.
What is a contract?
So what is a contract? It's an agreement, either written or spoken, between two or more
parties that creates a legal obligation.
The terms of a contract are enforceable by law, with clearly defined penalties and
remedies should the contract be breached. A contract breach is a failure, without legal
excuse, to perform any parts of the contract.