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An agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. The agreement can be formal, informal, written, oral or just plain understood. Some contracts are required to be in writing in order to be enforced. An agreement between two or more parties which creates obligations to do or not do the specific things that are the subject of that agreement.  Examples of a contract are a lease, a promissory note, or a rental agreement.

A contract may be categorized by its type (whether unilateral or bilateral), by its method of formation (whether express, implied, or quasi), by its validity (whether void, voidable, or unenforceable), and by its status (whether executory or executed).