What defines a contract in legal terms?

A contract in legal terms is defined as a binding agreement between two or more persons that is enforceable by law. This encapsulates the essential elements that make a contract valid and legally binding. Such an agreement typically involves two or more parties who must mutually consent to the terms presented, have the capacity to enter into a contract, and provide consideration, which refers to something of value exchanged between the parties.

When a contract is established, it creates enforceable duties and rights, meaning that if one party fails to fulfill their obligations, the other party has the right to take legal action to seek remedy. This legal enforceability distinguishes a contract from informal agreements or discussions that lack the components necessary to create binding obligations.

In contrast, the other options describe scenarios that do not meet the strict criteria of a legally binding contract. Verbal discussions, informal promises, and documents outlining roles of political parties may involve some level of agreement or intent, but they fail to establish the formalities and legal enforceability that characterize a true contract.