A contract is a legally binding agreement, which a Court would enforce. While the term "contract" often refers to a written document, most agreements could be binding and enforceable, even if they are entirely oral. For a contract to be enforceable, however, its subject matter must be legal. Thus the Court would not enforce contracts that are based on illegal activities. For instance in states that gambling is illegal, one cannot enforce an agreement of a lost wager in a court of law. In addition to formation and enforceability of a contract it is important that you understand many other important provisos, such as: Acceleration Clause, Exculpation Clause, and specifically the Arbitration Provisions, etc. Although, it is becoming a prevalent part of many written contracts, the arbitration clauses for instance, are the brainchild of Big Business. Despite the fair sounding language, they are mainly protective shelters designed by Corporate-Power Lawyers to shield Big Business from breach of their duties.… In today's litigious society and questionable business practices, an ounce of prevention may worth more than a pound of cure. So if you intend to sign a contract, make sure you contact Chosen Lawyers beforehand. Because what you don't know could cost you a bundle of cash and a ton of headaches.