What is contract?

  • (verb): Become smaller or draw together.
    Synonyms: shrink
    See also — Additional definitions below


A contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation, which may have elements in writing, though contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific performance of the contract or an injunction. Both of these remedies award the party at loss the "benefit of the bargain" or expectation damages, which are greater than mere reliance damages, as in promissory estoppel. The parties may be natural persons or juristic persons. A contract is a legally enforceable promise or undertaking that something will or will not occur. The word promise can be used as a legal synonym for contract., although care is required as a promise may not have the full standing of a contract, as when it is an agreement without consideration.

Read more about Contract.

Some articles on contract:

Ivica Mornar - Club Career
... The player was offered a new two-year contract by Anderlecht, but opted to move across the English channel to Portsmouth ... in December 2005 it looked as though Mornar's contract would be allowed to expire the next Summer ... However, it transpired that there was a clause in his contract guaranteeing him a further year at the club should relegation be avoided and he remained a ...
Jim Flaherty - Federal Politics - Department of Finance Contracts Questioned
... Board rules requiring a bidding process for contracts of $25,000 or more, Flaherty admitted his office broke government contracting rules in hiring ... MacPhie Company was awarded the $122,000 contract without tender by Flaherty's office ... called on Auditor General Sheila Fraser to conduct an audit into the untendered contract awarded by Minister of Finance Jim Flaherty to MacPhie Company ...
Huawei - History - International Expansion
... In 1997, Huawei won its first overseas contract, providing fixed-line network products to Hong Kong company Hutchison Whampoa ... In 2004 Huawei continued its overseas expansion with a contract to build a third-generation network for Telfort, the Dutch mobile operator ... This contract, valued at more than $US25 million, was the first such contract for the company in Europe ...
Option Contract
... An option contract, or simply option, is defined as "a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke ... An option contract is a type of contract that protects an offeree from an offeror's ability to revoke the contract ... Consideration for the option contract is still required as it is still a form of contract ...
Illusory Promise
... In contract law, an illusory promise is one that courts will not enforce ... This is in contrast with a contract, which is a promise that courts will enforce ... so named because they merely hold the illusion of contract ...

More definitions of "contract":

  • (verb): Make smaller.
    Example: "The heat contracted the woollen garment"
  • (verb): Make or become more narrow or restricted.
    Synonyms: narrow
  • (verb): Enter into a contractual arrangement.
    Synonyms: undertake
  • (noun): A variety of bridge in which the bidder receives points toward game only for the number of tricks he bid.
    Synonyms: contract bridge
  • (noun): A binding agreement between two or more persons that is enforceable by law.
  • (verb): Be stricken by an illness, fall victim to an illness.
    Synonyms: take, get
  • (noun): (contract bridge) the highest bid becomes the contract setting the number of tricks that the bidder must make.
    Synonyms: declaration

Famous quotes containing the word contract:

    A contract for better for worse is a contract that should not be tolerated.
    George Bernard Shaw (1856–1950)

    A good businessman never makes a contract unless he’s sure he can carry it through, yet every fool on earth is perfectly willing to sign a marriage contract without considering whether he can live up to it or not.
    Dalton Trumbo (1905–1976)

    The way in which men cling to old institutions after the life has departed out of them, and out of themselves, reminds me of those monkeys which cling by their tails—aye, whose tails contract about the limbs, even the dead limbs, of the forest, and they hang suspended beyond the hunter’s reach long after they are dead. It is of no use to argue with such men. They have not an apprehensive intellect, but merely, as it were a prehensile tail.
    Henry David Thoreau (1817–1862)