A contract is a binding legal agreement which is enforceable in a court of law. Meaning, a contract is an exchange of promises for the acts of breaking the law where it provides a legal reparation.

Whenever there is an offer capable of immediate acceptance is met with a "mirror image" acceptance, an agreement is said to be reached. The parties must have the necessary capacity to contract and the contract must not be either impossible, indeterminate, unimportant or illegal.