CONTRACT DEFINED. A contract is an agreement between two parties, resulting in an obligation or legal tie, by reason of which one party is entitled to have certain stipulated acts performed or forborne by the other.
The word "contract" is the term now commonly used to denote that one person is bound to another to do or render something, and that a duty is imposed as well as a right conferred, though "obligation," "agreement," "covenant," and "promise" are some times used in the same sense. In the Roman Civil Law, "obligation" was the term used to designate all the rights and liabilities which we term "rights in per sonam," or the rights which one person has to acts or forbearances from others. Here, as in all contractual relations, two parties are necessary, as a contract or obligation with one's self is a mere nullity. (Faulkner v. Howe, 2 Exch. 595.)