A contract is a mutual agreement between two or more parties who agree to perform or abstain from performing something. It is a document that establishes a binding legal relationship between such parties. Once the contract is drafted, signed, and executed, each party has a legal obligation to perform as per the terms and conditions mentioned therein. However, if a party fails to adhere to the provisions of the contract or they act in contravention and fail to perform their obligation, they may attract judicial penalties.
A contract, as mentioned above is the foundation for a legal and commercial relationship between two parties. Hence, it is essential that the clauses mentioned are in compliance with law. If otherwise, it could cause the entire document to be declared void. This means that all obligations and claims against breach (if any) would have no effect and no penalties or other enforcements could be made against the defaulting party.