Describe contract law

Question

What do you mean by contract law?

Answer 1

A contract is “an agreement that creates rights and obligations that can be enforced in law.” It is “a voluntary exchange of promises or commitments between parties that are legally enforceable in our courts.”

Contracts, and the legal right to rely on their enforcement, form the foundation of day-to-day business interactions. Therefore, it is essential that accountants have a good working knowledge of contract law.