A contract is a legally enforceable agreement between two or more parties (individuals or businesses), created when the parties reach an agreement on the duties, rights and obligations for each as well as the consideration to be paid or given to each party. A contract can be oral or written, however some are required to be in writing in order to be enforceable. The law of contracts covers a broad number of areas — including proper formation of a contract and appropriate remedies for breaking or “breaching” a contract.