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 North Dakota, as in other states, a contract is a legally binding agreement between parties that can be written or oral. The enforceability of a contract in ND hinges on the presence of three essential elements: (1) an offer, (2) acceptance of that offer, and (3) consideration, which refers to something of value exchanged between the parties. This could be money, services, or mutual promises. The terms of the contract must be specific enough to outline the obligations of each party and allow for enforcement. The terms 'agreement' and 'contract' are often used interchangeably, and the enforceability of the document does not depend on its label, but rather on the presence of the necessary legal elements. If these elements are present, the agreement, regardless of whether it is labeled as an 'agreement' or a 'contract,' is considered enforceable under North Dakota law.