True or false: A contract is an agreement between two or more parties, enforceable by law, by which each party promises to do, or not to do, something.

• A. True
• B. False
• C. Not sure
• D. Sometimes

Answer: (A)

A contract is a legally binding agreement between two or more parties in which each promises to do or not to do something. This enforceability by law is what makes a contract more than a casual promise, because it provides remedies if one side doesn’t perform. In a community association, contracts govern vendor service, management arrangements, leases, and other obligations, so understanding that they bind specific promises is essential. The statement is true because it captures the core elements: there are multiple parties, there is an agreement with promises, and it’s enforceable by law. Remember that validity also relies on offer and acceptance, consideration, and the parties’ legal capacity and the legality of the purpose; missing any of these can affect enforceability, but the description given still accurately describes what a contract is.