Contracts: Principles and Performance

Contracts are formal agreements between parties that set out their promises and obligations. Principles of contracts include mutual consent, clarity of terms, and legal capacity to agree. Performance refers to how well each party fulfills their promises; successful performance means meeting the agreed terms. If one side doesn’t perform as promised, the other may seek remedies or damages. Contracts are enforceable by law, ensuring that agreed-upon duties are honored, providing certainty and protection for all involved.