A contract is considered as a legally binding agreement between two parties
A contract is considered as a legally binding agreement between two parties. It clearly states that all agreements are not considered as contract unless they satisfy factors called “elements of a valid contract”. There are two sub divisions under the “elements of a valid contract”, essential elements and vitiating factors. Once a contract was made, the parties bound by the contract must act according to the terms stated in the contract. If they fail to comply with the terms in a contract, they find themselves answerable for that failure in law. Breach of contract occurs when a party fails to adhere to the terms mentioned in a contract.