A contract is generally a written or spoken agreement between persons or entities that includes obligations for each party (mutual obligations or mutuality) and enough specific information to be enforceable by either party (specificity).

The elements of forming an enforceable contract are generally (1) an offer made; (2) acceptance of the offer; and (3) consideration given by each party for the other party’s performance of the agreement—such as money in exchange for products or services, or mutual promises exchanged—which is often referred to as the bargained-for exchange.

The word "agreement" is often used interchangeably with the word "contract," and a document labeled as an agreement (with the necessary legal elements included) is as enforceable as a document labeled as a contract.

In Massachusetts, a contract is recognized as a legally binding agreement when it meets certain criteria. These criteria include the presence of an offer, acceptance of that offer, and consideration, which is something of value exchanged between the parties. The consideration must represent a bargained-for exchange, such as money for goods or services, or mutual promises. For a contract to be enforceable, it must also have mutual obligations and enough specificity so that the terms and the intentions of the parties are clear. While contracts can be written or oral, certain types of contracts must be in writing to be enforceable under the Statute of Frauds, such as contracts for the sale of land or agreements that cannot be performed within one year. The terms 'agreement' and 'contract' are often used interchangeably, and a document titled as an 'agreement' can be as enforceable as one labeled 'contract' if it contains the necessary legal elements.