Introductory Business Law CLEP Exam 2026 – Your All-in-One Guide to Master the Test!

A contract is a legally binding agreement between two or more parties. This means it is a promise or agreement that is backed by law and has consequences if not fulfilled. While options B and C mention an agreement and a contract, respectively, neither specify that it is legally binding. Option D mentions a written document, which is often a component of a contract, but a contract can also be formed verbally or through actions. Therefore, option A is the most accurate and comprehensive definition of a contract.