The Importance of Contract
Contract law is (31) great importance in business and in everyday life. Even though most of us are unaware of it, we enter into a (32) number of binding contracts every day. Ordinary business transactions such as buying a pack of gum at the corner grocery store, purchasing a ticket at a movie theater, or ordering a meal at a restaurant all involve valid contracts that pro vide the concerned parties (33) certain rights and duties.
A contract is a legally enforceable promise between two or more people. (34) all con tracts contain enforceable promises, not all promises between people result in contracts. There are many promises made (35) people that the courts will not enforce.
For example: Tom invites Lily to dinner and Lily (36) Tom is looking (37) to the date and can think of little else all day long. A half hour before Tom was to pick her up, Lily calls him and tells him that she will not be able to keep their date since Rose has (38) her to go dancing and she has accepted. Tom is upset, hurt, and quite angry. He’d (39) to sue her for breach of contract, since she has clearly broken a promise made to him earlier that day. Will he succeed
Lily may not be a very nice person; she has broken a promise to a friend and needlessly hurt his feelings in the process. She may have had a moral obligation to attend the dinner date; nevertheless, she had no legal obligation to do so. The agreement she breached was not a con tract, (40) merely a social obligation that the courts will not enforce.
The Importance of Contract