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.

Contracts between governmental entities and contracts between private citizens or entities and governmental entities often have unique considerations such as the contracting or bidding process for government contracts and the governmental entity's legal liability for failing to meet its obligations under the terms of a contract (see the subtopic on sovereign immunity).

In Delaware, as in other states, a contract is a legally binding agreement between parties that can be written or oral. The essential elements required to form an enforceable contract in Delaware include an offer, acceptance of that offer, and 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 be enforceable, and there must be mutual obligations or mutuality. While the terms 'agreement' and 'contract' can be used interchangeably, the enforceability of the document depends on the presence of the necessary legal elements, not the label used. Contracts involving government entities in Delaware may have additional requirements due to sovereign immunity, which can limit the government's liability and affect the contracting process. For instance, there may be specific bidding procedures for government contracts and certain immunities that protect the government from being sued under certain conditions. It is advisable to consult with an attorney to understand the nuances of contracting with government entities in Delaware.