What is a Contract

The contract is a legally binding agreement or promises

The contract contains two elements

i) a promise or agreement

ii) that is binding by law

What is a promise

A promise is an undertaking by one person to do something or to refrain from doing something.

Example

If you paint my house, I will pay you $5000

The phrase I will pay you $5000 contains a promise to pay a certain amount of money by me if the condition of painting my house is satisfied.

If you agree to this agreement, we can be said to have an agreement involving you performing a task in exchange for me paying you money.