What constitutes a "contract"?

A contract is fundamentally defined as a legally enforceable agreement between two or more parties. It requires certain elements to be valid, including mutual assent (offer and acceptance), consideration (something of value exchanged), capacity (the legal ability to enter into a contract), and lawful purpose. This definition encompasses a wide range of agreements, whether written or oral, as long as they meet the legal criteria for enforcement. The enforceability aspect is crucial; it means that if one party does not fulfill their obligations, the other party can seek legal remedies. This core concept is central to understanding contracts in legal contexts.

The other options presented do not align with the definition of a contract. A type of court ruling refers to decisions made by judges, and a formal notice of intention to sue represents a legal step in dispute resolution, distinct from contracts themselves. Lastly, a fiscal arrangement between government entities pertains to financial agreements, which, while may involve contracts, do not define what a contract is in the legal sense.