What is defined as a legally enforceable agreement between two or more parties?

A legally enforceable agreement between two or more parties is known as a contract. Contracts are foundational to many business interactions and legal dealings, ensuring that all parties involved have a clear understanding of their rights and obligations. For an agreement to be classified as a contract, it typically must involve an offer, acceptance of that offer, and consideration, which is the value exchanged between parties.

In a professional context, especially within the field of funeral service, understanding contracts is crucial, as these agreements govern relationships with clients, suppliers, and other entities. Contracts can range from simple agreements to complex legal documents, and they necessitate mutual consent, legality of purpose, competent parties, and a clear agreement on terms.

While the other choices represent elements often associated with or stages leading to a contract, they do not themselves fulfill the definition of a legally enforceable agreement. For example, an offer is merely a proposal to enter into a contract, a memorandum is generally a note or record of something, and a proposal suggests an intention but lacks the key legal enforceability that a contract holds.