Contract law role meaning

Contract law serves as your protection in every legal agreement you make in life. Contract law makes these agreements "enforceable", which usually means that it gives the party the power to compensate and obtain money damages caused by the other party due to a breach of contract.

Introduction. The basic purpose of contract law is to provide a framework within which individuals can freely contract. The contract can legally bind the contracting parties by the creation of laws which are applicable only to the very individuals that create the contract and its subsequent legally binding laws.

Contracts: Allow businesses to plan for the future by providing a sense of normalcy in all business transactions. Establish the relative value placed upon goods and services. Establish expected standards of performance whenever transactions occur. Provide assurance that obligations will be met.