Contractual Agreements

June 4, 2008
Intellectual Property News and Interesting Facts

The world around us is full of contractual agreements. Whenever you purchase a vehicle, buy a house or even just buy a packet of sweets, you are entering a contractual agreement. A contractual agreement is a legally binding exchange of promises or an agreement between parties that the law will enforce.

Contract law is based on the Latin phrase pacta sunt servanda, which literally means that promises must be kept.

A breach of a contract is recognized by the law and remedies can be provided. Almost everyone makes contracts everyday. Sometimes it’s necessary to have a written contract, for example when buying a house or taking out finance on a new car.

However the vast majority of contracts are made orally, like buying a book, or a coffee at a shop. Contract law can be classified as part of a general law of obligations.