What is the nature of a contract?

A contract is fundamentally an agreement that creates legally enforceable obligations between parties. It can take different forms, including being expressed verbally or in writing, or implied based on the circumstances, actions, or conduct of the parties involved. When a contract is expressed, the terms are specifically stated, while an implied contract is formed through the actions of the parties, indicating that they mutually agree to the obligations without a formal agreement.

The nature of contracts encompasses both expressed and implied agreements, allowing for flexibility in how parties can establish their obligations. This characteristic is essential for ensuring that relationships and transactions can be recognized legally, even when not all terms are explicitly laid out in a formal document. Thus, understanding that contracts can be expressed or implied is critical for anyone involved in the formation and interpretation of contracts in various contexts.