A contract is simply a legally binding agreement between parties to do or not do something.
Consumers enter into contracts for many reasons.
An agreement to buy a car or buy a home typically involves a contract. If one hires a service to maintain his or her lawn, a contract is created. There are several factors to look at to determine whether a contract has been made. Once a contract has been created, it must be determined if there are any issues concerning the contract's validity. Finally, if there has been a breach of the contract, there is a question of whether damages have occurred.