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 Tennessee, as in most states, a contract is a legally binding agreement between parties that creates mutual obligations. The essential elements for forming an enforceable contract in Tennessee include (1) an offer, (2) acceptance of that offer, and (3) consideration, which refers to the value exchanged between the parties, such as money, services, or mutual promises. This consideration must be a bargained-for exchange, meaning each party must provide something of value in return for the other party's performance or promise. Contracts can be written or oral, although certain types of contracts must be in writing to be enforceable under the Statute of Frauds, such as contracts for the sale of real estate or agreements that cannot be performed within one year. The terms 'agreement' and 'contract' are often used interchangeably, and a document titled 'agreement' that contains the necessary legal elements is just as enforceable as one labeled 'contract'. Specificity in the contract terms is important to ensure that the agreement is clear and can be enforced by either party in a court of law if necessary.