A valid and legally binding contract is an agreement that creates legal rights and obligations between two or more people or entities such as companies, corporations and organisations.
A contract may be used for various transactions, including the sale of land or goods, or the provision of services. However, in everyday life, very often, we are also entering an implied contract each time when we make a purchase at any store, order a meal at a restaurant or watch a movie at a cinema, etc. without even thinking about it.
Under the contract, if either party fails to perform their duties according to the contract terms and conditions,
without lawful excuse, it can lead to a breach of contract situation, and in this regard, appropriate remedy, subject to the nature and severity of the breach, may be awarded to the innocent party.
It is therefore important for parties to a contract to understand their respective legal rights and obligations, implement mitigating measures and carry out the duties accordingly to avoid disputes and possibly, time consuming and costly court proceedings.