What is a contract?

A contract is a legally binding agreement between two or more parties. It is an offer made by one party, and accepted by another, where each party provides a benefit, or consideration, to one another. In California, contracts are legally binding if all elements are present, including an offer, acceptance, consideration, and an agreement to the terms of the contract. For example, if two parties decide to enter into a contract to buy or sell a car, the offer is made by the seller, the acceptance is made by the buyer, and the consideration is the money the buyer pays for the car. When both parties agree to the terms of the contract, they have formed a legally binding agreement. Contracts can be verbal or written, but it is usually best to have written contracts to protect the rights of each party. Breach of contract occurs when one party fails to fulfill their obligations under the contract. This can have serious repercussions, so it is important to make sure all terms are understood before any agreement is made.

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What is a contract?

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