What is a contract?
Authored By: Central Virginia Legal Aid Society, Inc.
This week’s legal term of the week is “Contract.” A contract is an agreement between two or more persons, or between persons and companies. Usually, a seller agrees to deliver a product or provide a service, and a buyer agrees to pay money. A contract may be oral or in writing. An example of an oral contract is a babysitter’s agreement to look after children and a parent’s promise to pay an hourly rate. Some contracts must be in writing, for example, a contract for the sale of land. A written contract could look very formal and official or be handwritten on a plain sheet of paper. A contract states the rights and duties of the buyer and the seller.