Jurisdiction(s):
United Kingdom

Key definition

Contract definition

What does Contract mean? In legal practice, a contract is the enforceable agreement by which parties set out promises and allocate risk, whether made orally, in writing or by conduct. The law of contract is principally case-law driven across England & Wales, Scotland, Northern Ireland and Ireland, with statutory interventions on formalities, construction and consumer protection. In England & Wales, Northern Ireland and Ireland, formation generally requires offer, acceptance, consideration and an intention to create legal relations. In Scotland, consideration is not required; a contract is formed by agreement (consensus in idem) with the necessary intention, with writing only needed in defined cases. Key features...

Structure and Drafting of B2B Commercial Contracts: Formation, Parties, Recitals, Operative Terms, Boilerplate, Schedules and Execution (Simple Contracts v Deeds; Standard Terms v Bespoke; Interpretation Principles)

Published by a LexisNexis Commercial expert

Practice notes

Form of commercial Contracts

This Practice Note sets out the structure and format of a business‑to‑business commercial contract or Agreement. It summarises the usual layout of commercial agreements and identifies the details to include in the contract document, covering the parties, background (recitals), the main body, schedules, and the attestation provisions.

How a contract is formed

A contract is a legally enforceable arrangement that gives rights and imposes duties between two or more parties. For a contract to exist, contract Law requires four core elements:

offer (see Practice Note: Forming enforceable contracts—offer)
acceptance (see Practice Note: Forming enforceable contracts—acceptance)
consideration (see Practice Note: Forming enforceable contracts—consideration)
an intention to create legal relations (see Practice Note: Forming enforceable contracts—intention to create legal relations)

Simple contracts v deeds

Simple contracts may arise orally, by conduct, or in writing. Certain categories of simple contract, however, must be in writing (see Practice Note: Contracts required to be in writing). Some agreements call for greater formality and must be executed by deed...

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Web page updated on 21/05/2026

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