Contract law is a branch of law that governs the creation and enforcement of agreements between parties. It ensures that promises made in a contract are legally binding, meaning that if one party fails to fulfill their obligations, the other party can seek legal remedies. Contracts can be written or verbal and typically involve an offer, acceptance, and consideration. Key elements of contract law include capacity, which refers to the legal ability of parties to enter into a contract, and legality, meaning the contract's purpose must be lawful. Understanding these principles helps individuals and businesses navigate their rights and responsibilities in agreements.