A contract is a legally binding exchange of promises or agreement between
parties that the law will enforce. Contract law is based on the Latin phrase
pacta sunt servanda (literally, promises must be kept). Breach of a contract is
recognised by the law and remedies can be provided. Almost everyone makes
contracts everyday. Sometimes written contracts are required, e.g., when buying
a house. However the vast majority of contracts can be and are made orally, like
buying a law text book, or a coffee at a shop. Contract law can be classified,
as is habitual in civil law systems, as part of a general law of obligations.