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- So, the first thing were gonna talk about is the definition of a contract. Whats the definition of a contract? Well, the definition is pretty simple. Its a voluntary agreement between two or more parties to either perform or not perform, and they come to a meeting of the minds regarding the subject matter. So, what does that mean? Well, it means that the buyer and seller, for example, agree that once the purchase contracts agreed to that both parties are gonna perform. Theyre gonna follow through with what they said. An example of non-performance would be a no-compete clause in employment law. The employer says, Ill hire you but youre gonna sign this no-compete clause that says that if you quit, then for the next two years after you quit, you cannot compete against us. So, that is the agreement to not do something. Meeting of the minds, thats a term you have to know. A meeting of the minds simply means that the buyer and seller have agreed, for example, to the terms of