Contracts

Contracts are promises that the law will make obligatory. The law provides remedies if a promise is breached or recognizes the performance of a promise as a duty. Contracts arise when a duty does or may come into existence because of a promise made by one of the parties. To be legally binding as a contract, a promise must be exchanged for sufficient consideration. Adequate consideration is a benefit or detriment a party receives that reasonably and fairly induces them to make the promise/contract. For example, promises that are merely gifts are not considered enforceable since the personal satisfaction the grantor of the promise may receive from the act of giving is normally not considered adequate consideration. Certain promises that are not considered contracts may, in restricted circumstances, be enforced if one party has relied to his detriment on the assurances of the other party.