The purpose of a contract is to establish a legally binding agreement between two or more parties, outlining their responsibilities, obligations, and expectations towards each other in a specific transaction, project, or relationship. Contracts define the terms and conditions that the parties agree to follow, ensuring that each side is aware of and consents to their rights and duties. Contracts help to reduce uncertainties, manage risk, and protect the interests of the parties involved. They also provide a framework for resolving disputes if disagreements or misunderstandings occur during the course of the agreement.
