Should I Really Take Contracts Seriously?

Abstract

Contracts are ubiquitous in any business. Contracts define relationship between the parties and define the rights and obligations of the parties to the contract. Contracts help in moving a business company from the zone of uncertainty to the zone of certainty. All contracts are agreements but all agreements are not contracts. Only those agreements which are enforceable by law are contracts. Thus, it is like the relationship between a rectangle and square: all squares are rectangles but all rectangles are not squares. Contract for any illegal purpose is not enforceable by law and thus, it would be correct not to call it even a contract—it is simply an agreement, which is not enforceable by law and hence it cannot be called a contract.