Contract law is the area of law that governs agreements between parties, whether individuals or businesses, relating to goods, services, or other obligations. It covers the formation, interpretation, and enforcement of contracts, as well as the remedies available to parties in the event of a breach of contract. Contract law seeks to ensure that parties honor their promises and that disputes arising from contractual relationships are resolved fairly and effectively. This area of law is fundamental to commercial transactions and plays a crucial role in promoting economic activity and providing stability in business relationships.