The Agreement That Is Enforceable by Law Is Called

The agreement that is enforceable by law is called a contract. Contracts are a fundamental part of business law and are used to establish legally binding agreements between parties.

A contract is an agreement between two or more parties that creates enforceable obligations. The parties involved in a contract can be individuals, businesses, or other organizations. To be enforceable, a contract must meet certain requirements, including:

1. Offer and Acceptance: There must be a clear offer made by one party and an acceptance of that offer by the other party.

2. Consideration: Both parties must receive something of value from the other party in exchange for their promise.

3. Capacity: The parties involved in the contract must have the legal capacity to enter into it. For example, minors do not have the legal capacity to enter into a contract.

4. Legality: The subject matter of the contract must be legal. A contract for illegal activity is not enforceable.

5. Consent: Both parties must enter into the contract voluntarily and without duress.

Once a contract is established, it becomes legally binding. This means that both parties are obligated to fulfill their obligations as outlined in the contract. If one party fails to meet their obligations, the other party may have legal recourse to seek damages or enforce the contract in court.

Contracts can be oral or written, but it is generally recommended that contracts be in writing to avoid ambiguity and to provide a clear record for both parties. Written contracts can also be more easily enforced in court.

In conclusion, a contract is an agreement between two or more parties that creates legally binding obligations. To be enforceable, a contract must meet certain requirements such as offer and acceptance, consideration, capacity, legality, and consent. It is important for businesses and individuals to understand the basics of contract law to ensure that they enter into agreements that are legally enforceable.