Relates to the area of law dealing with persons or companies engaged in a voluntary promise between competent parties to do, or not to do, something that the law will enforce. These are binding promises, which may be oral or written.
A contract could obligate someone even if he or she wants to call the deal off before receiving anything from the other side. The details of the contract usually include: who, how, what, how much, how many, when, etc. These areas are the provisions or terms of the contract. A contract may only be joined by people who are able to understand what they are doing. It requires maturity and mental capacity of both parties.
A valid contract is considered if the persons involved are the age of majority, which is usually age eighteen. Whether people have the capacity to understand what they are doing and to appreciate its effects when they make a deal determines whether a person is mentally capable of engaging in a valid contract. Many types of contracts do not have to be written to be enforceable.
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