What defines the fundamental characteristics of a contract?

The fundamental characteristics of a contract are best defined by the nature of the contract itself. This encompasses the essential elements that constitute a contract, such as offer, acceptance, consideration, mutual consent, capacity, and legality of purpose. Understanding the nature of a contract allows one to appreciate how these elements come together to form a legally binding agreement.

While the rights and duties of parties, enforcement mechanisms, and the legal and regulatory framework are important aspects of contracts, they stem from the fundamental characteristics that define what a contract is in the first place. The nature of the contract sets the groundwork for the relationship between parties, establishing their obligations and entitlements. Therefore, grasping the fundamental nature is crucial for interpreting and enforcing contracts effectively.