What is a legally enforceable agreement between two or more parties in which each party makes some promise?

• A. Contract
• B. Promisor
• C. Promisee
• D. Privity of contract

Answer: (A)

A contract is a legally enforceable agreement between two or more parties in which each party makes some promise. That mutual set of promises creates binding duties that the law can enforce, assuming the essential elements—offer, acceptance, consideration, capacity, and legality—are present. The other terms refer to specific roles or doctrines rather than the overall agreement itself: a promisor is the party who makes the promise, a promisee is the party to whom the promise is made, and privity of contract describes the relationship that exists between the contracting parties and who has rights or obligations under the contract. In this context, the term that best fits the description of the whole enforceable agreement is contract.