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youre watching video vocab by business English pod dot-com in this lesson well look at the key principles behind contracts and contract law if youve ever signed up for a mobile phone booked a hotel room or accepted a job offer youve made a contract and there are several key aspects of every contract beginning with the intent to make one an offer and consideration for both sides agreement on the specific elements of a contract leads to acceptance at which point the contract is legally binding to both parties of course the parties must have made truthful representations in the course of their negotiations a contract may also be threatened when one party does not fulfill its obligations which can lead to repudiation there is also a situation called frustration when a contract cannot be fulfilled for unseen reasons when two parties under contract cannot agree they may try to settle their dispute through a process of arbitration if this doesnt work one party may attempt to sue the othe