A contract can be defined as an agreement entered into between two or more Parties with the serious intention of creating a legal obligation and provides a legal framework which regulates same. This provides peace of mind in that the law will uphold their agreement and enforce it should it become necessary. When entering into a contract, obligations are created between the Parties i.e. a right to performance, coupled with a corresponding duty to perform. These obligations are acknowledged when the Parties conclude the contract and may be legally enforced. If a Party fails to honour these obligations, such a party would have committed a breach of contract, which will lead to the other Party suffering some form of damage.
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