A contract is defined as what?

A contract is best defined as a legally binding agreement between two or more parties. This definition encompasses the essential elements required for a contract: the mutual consent of the parties involved, an offer, acceptance, and consideration (something of value exchanged). Unlike informal methods of agreement, such as a verbal agreement between friends, a handshake deal, or a proposal that remains unaccepted, a legally binding contract provides enforceable rights and obligations. This means that if one party fails to fulfill their part of the agreement, the other party has the right to seek legal remedies. Therefore, the correct answer captures the formal and enforceable nature of contracts in legal contexts.