Learning outcomes

Define the nature and meaning of a contract

Identify the regulation of the form of contracts and apply relevant examples

Reflect on their abilities to effectively analyse problems and apply relevant legal principles

Transactions, agreements, exchanges of goods and services… they are in the base of every civilization. Humans have used exchanging methods to acquire what they needed in exchange for what they have for thousands of years. Nowadays, these exchanges are regulated by contracts, which are mutually accepted, legally binding agreements between the interested parties.

As any other essential part of human’s life and interaction, it is necessary to have certain rules that ensure that one party is not going to benefit from that exchange by prejudicing the other party. For this reason, contracts are regulated by Contract Law, the part of the legal system that stablishes the obligations and rights of any agreement, oral or written, as well as the limitations and freedom included on them. Contract law is used for a wide variety of things, from tenancy contracts to even an employment contract.

In the following chapter, we will be able to see how Contract Law works.