The formation of business contracts
As previously mentioned, the law imposes on us all a variety of obligations and a failure to abide by these can produce consequences which may be expensive. Such obligations can derive from the general law – for instance, a duty not to harm one’s fellow citizen through negligent conduct. However, obligations can also be created by agreement. If two or more persons enter into a contract in which they agree to honour certain promises, the law recognises the binding nature of these promises and should either of the parties fail to carry out their undertaking, the other can seek the assistance of the court. This is not just the position under English law; all systems recognising the concept of contractual obligations will take a similar stance.