A contract is considered to be a legally binding agreement document between two or more parties. It defines and protects the rights and responsibilities of all the parties involved in the agreement. A contract is governed by appointed applicable law and has to be respected by all the parties signing.
Why is contract drafting important?
Contracts are the best way to ensure that the interests of parties involved in a mutual agreement are protected under the law, and each of them will be bound to abide by the terms mentioned in the agreement. If one party breaks the contract, then the other party will have solutions available, which are known as remedies.
It is best always to write down a contract. If one party ignores the terms and conditions of the contract, it can lead to legal consequences. In such situations, the court usually decides the party's fate that has committed the violation and issues the verdict in keeping with the terms and conditions of the contract.