Contract vs. Promise

Attribute	Contract	Promise
Definition	A legally binding agreement between two or more parties	A commitment to do or not do something
Enforceability	Legally enforceable	Not always legally enforceable
Consideration	Requires consideration from all parties involved	May or may not involve consideration
Formality	May require specific formalities to be valid	Can be informal
Intention	Intention to create legal relations is necessary	May not always involve intention to create legal relations

Definition

A contract is a legally binding agreement between two or more parties that creates obligations to do or not do certain things. It is enforceable by law and can involve the exchange of goods, services, money, or promises. On the other hand, a promise is a commitment or assurance that one will do something or that a particular thing will happen. While promises are not necessarily legally binding, they are often seen as morally or ethically binding.

Formation

Contracts are typically formed when there is an offer, acceptance, consideration, and an intention to create legal relations. An offer is a proposal made by one party to another, while acceptance is the agreement to the terms of the offer. Consideration refers to something of value exchanged between the parties, and the intention to create legal relations means that the parties intend for the contract to be legally binding. Promises, on the other hand, can be made informally and do not require the same formalities as contracts. They can be made verbally, in writing, or even implied through actions.

Enforceability

Contracts are enforceable by law, meaning that if one party fails to fulfill their obligations under the contract, the other party can seek legal remedies such as damages or specific performance. Promises, on the other hand, are not typically enforceable in court unless they meet certain criteria, such as being part of a contract or being made under seal. However, promises can still have moral or social consequences if broken, even if they are not legally binding.

Types

Contracts can be classified into various types, such as bilateral contracts (where both parties make promises to each other), unilateral contracts (where one party makes a promise in exchange for an act), and implied contracts (where the terms are not explicitly stated but can be inferred from the parties' actions). Promises, on the other hand, can be categorized as simple promises (a straightforward commitment to do something) or conditional promises (where the promise is contingent on certain conditions being met).

Consideration

Consideration is a key element of contracts, as it refers to something of value exchanged between the parties. This can be money, goods, services, or even promises. Without consideration, a contract may not be enforceable. Promises, on the other hand, do not always require consideration to be binding. For example, a promise made under seal or a promise made in a deed may be enforceable even without consideration.

Termination

Contracts can be terminated in various ways, such as through performance (both parties fulfill their obligations), agreement (both parties agree to end the contract), frustration (an unforeseen event makes it impossible to fulfill the contract), or breach (one party fails to fulfill their obligations). Promises, on the other hand, can be terminated by simply not fulfilling the commitment made. While there may be social or moral consequences for breaking a promise, there are typically no legal remedies available.

Conclusion

In conclusion, contracts and promises are both important aspects of human interaction, but they differ in terms of enforceability, formation, and types. Contracts are legally binding agreements that require certain formalities to be enforceable, while promises are often seen as morally or ethically binding. Understanding the differences between contracts and promises can help individuals navigate their relationships and obligations more effectively.