Contract Law
Definition
This is a body of law that governs making, enforcing, and breaking agreements between parties. It ensures all parties involved in a contract fulfill their obligations as promised.
Analogy
Think of contract law like the rules and referee in a soccer game. The rules are there to make sure everyone plays fairly, and if someone breaks them (like by committing a foul), the referee steps in to enforce penalties. Similarly, contract law sets out how contracts should work, and courts can step in if someone doesn't do what they've agreed to.
Related terms
Breach of Contract: This occurs when one party in a contract fails to fulfill their agreed-upon obligations.
Consideration: Something of value exchanged between parties during a contract; it's what each party gets out of the agreement.
Enforceability: A term referring to whether or not a court would uphold the terms of a contract.
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