June 4th, 2000. The word contract, however, in its true sense, means an agreement, whether written or not, which is enforceable by law, viz. , the coercive power of the state 1 can be brought to bear so to force one to live up to their bargain. An enforceable promise, a contract, comes into being only when there is something given in exchange. It is the very nature of business, usually continually, to be making agreements for the supply of certain articles or the performance of specified work at a certain price, rate, or commission. Legal entanglements in contract law do not come about until after individuals have made a voluntary contract and on when one of the parties fails to carry out its terms.
Contract law has no primary authority, no jurisdiction unless invoked by a party to a contract.
Thus, the legal nature of contract is a two sided trade with both sides, to the degree as established between themselves, to both voluntarily giving and both gratefully receiving some service or product. Contract law is self regulating and imposes no duty or obligations to anyone not a party to the contract. 3 Sir Henry Sumner Maine , Ancient Law .