ABSTRACT
A contract is an agreement enforceable at law and is the basis of the business world’s commercial activities. Contracts provide the means for people and businesses to sell property, services and other rights. Selling a car or computers is based on a sales contract; engaging an employee is based on a contract of service; the lease of premises is based on a rental contract; over the internet, the sale of goods and services is based on electronic contracts. Without enforceable contracts, commerce would break down. The parties enter into contracts voluntarily and are free to agree on the terms they wish, subject to legislation enacted to protect consumers, debtors and others from unfair contracts. The courts must enforce the terms of the contracts if a party fails to perform the contract. The source of contract law is the common law of contracts, which developed from early court decisions that became precedent for later decisions.
