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lets start off with a little brainstorm so heres our first brainstorm for today what comes to your mind when you hear the word contract a contract we say it is a a legally binding agreement and its an agreement between two or more parties whereby something is done or promised to be done or given or promised to be given so we say a contract is legally binding so its an agreement that is enforceable by law therefore all parties in the contract have a legal obligation to honor their parts of the contract and in contracts you will hear of the reference to various parties we have the reference to one party we called an offerer and another party we call offeree so by the term offerer you know that thats the person who would have made an offer and the offeree is the person who have accepted that offer so let us look at two terms that are often confused so in looking at contracts it is very important that we do not confuse the concepts of an agreement with the concept of an of a contract