ABSTRACT
In everyday language terms such as contract, agreement, understanding, promise, transaction, business, obligation, undertaking and covenant are used in loose and overlapping ways. In legal parlance, they each have a precise use and meaning. Specifically, promise means assumption of obligations by an individual in favour of others (unilateral promise); transaction is a historically determined concept expressing the autonomy of private individuals; obligation is the relationship between a debtor and his creditor; undertaking is a generic expression; understanding is commonly used to denote a preliminary contract; contract is the agreement between two or more parties to create, modify or extinguish a legal relationship (Art 1321 civil code); covenant is found in various set expressions (oppressive covenant, covenant for pre-emption, fiduciary covenant, covenant of redemption, and so on) and indicates a special agreement, usually consisting of a single clause; agreement can apply to any meeting of minds of legal significance, and is used fairly generically.
