What is the definition of a legal contract?

A legal contract is primarily defined as an agreement between two or more parties that is enforceable by law. This means that for a contract to be legally binding, several essential elements must be present, including offer, acceptance, consideration, mutual consent, and the intention to create legal relations.

The first option reflects this comprehensive understanding of a legal contract, indicating that it is not merely a casual understanding but a formalized agreement that has specific legal implications and obligations for the parties involved.

In contrast, the other choices do not fulfill the criteria of a legal contract. A verbal promise between friends lacks the necessary formality and exchange of consideration typically required for enforceability. A document outlining company policies, while potentially informative, does not constitute an agreement between parties unless it includes mutual consent and consideration. An informal arrangement similarly lacks the necessary legal framework, as it typically does not involve the formalities that a legal contract necessitates. Hence, the definition of a legal contract as an agreement between two or more parties captures the essence of its enforceability and legal significance.