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One of the issues that people worry about in the law of contracts is exactly what kind of agreements do they cover. Ah, the basic definition of a contract is any agreement between two or more parties in which people either agree to perform or abstain from any act. Generally speaking we talk about the ability to have gains from trade. And in the simplest kind of case it means that I give you my horse and you give me your cow, a contract of barter. But in many cases it turns out that the key element is going to be gains from trade over time, so that I am going to lend you money today and you are going to repay me tomorrow. It turns out that we always use self-help devices in order to firm up these relationships. I may take security before I make you a loan. I may only make loans to people whom I trust, I may only make loans if somebody else is prepared to guarantee them. But in the end these informal devices will come up short unless there is the security and the knowledge that you can
