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A contract is a legally binding agreement between two or more persons. For example, if you purchase any goods; if you buy a house; if you engage a builder to carry out work on your house; if you borrow money; if you order goods or machinery from a manufacturer, these are all types of contracts.

Laws pertaining to an agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other’s duty or a remedy for the breach of the other’s duty.

A contract is a legally binding exchange of promises or agreement between parties that the law will enforce.

The law of contracts is vital to the law which affects consumers. It is a complex area and is governed both by the “general law” – that is, laws which have evolved from decisions made over the years by Judges in relation to contract disputes and secondly, “legislation” or “statutory law” – laws introduced by government. Examples of these types of statutory laws are the Sale of Goods Act, the Trade Practices Act, the Fair Trading Act, the Credit Act and the Contracts Review Act.

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