Contracts are widespread in commercial law and are the legal basis for transactions worldwide. The most common examples are contracts for the sale of services and goods (wholesale and retail trade), construction contracts, transport contracts, software licenses, employment contracts, insurance policies, sale or lease of land and various other uses. 4 Contracts Most people think of contracts as long, printed and formal documents signed when buying a vehicle, selling a house, or taking out insurance. These represent only a small fraction of the contracts you will enter into in your life. Trade agreements assume that the parties intend to be legally bound, unless the parties explicitly state otherwise, as in a heads of agreement document. For example, in Rose & Frank Co v. JR Crompton & Bros Ltd, an agreement between two commercial parties was not obtained because an “honour clause” in the document says, “This is not a commercial or legal agreement, but only a declaration of the parties` intention.” Many contracts contain a jurisdiction selection clause that specifies where contract disputes should be negotiated. The clause may be general and require that any matter arising out of the contract be filed in a particular State or country, or that a case be brought before a particular court. For example, a jurisdiction clause may require that a case be filed in the state of California, or it may be necessary for the case to be submitted to the Los Angeles County Superior Court. If the contractual conditions are uncertain or incomplete, the parties cannot have reached an agreement in the eyes of the law.  An agreement does not constitute a contract and failure to agree on key issues that may include issues such as price or safety can lead to the failure of the entire contract. However, a court will endeavour, to the extent possible, to permit commercial agreements by interpreting an appropriate design of the contract.  In New South Wales, even if a contract is uncertain or incomplete, the contract may be binding on the parties if there is a sufficiently secure and comprehensive clause requiring the parties to submit to arbitration, negotiation or mediation.
 Contract theory is the legal theory that deals with normative and conceptual issues in contract law. One of the most important questions in contract theory is why contracts are applied. An important answer to this question focuses on the economic benefits of applying good deals. Another approach, associated with Charles Fried, asserts that the purpose of contract law is to enforce promises. This theory is developed in Fried`s book Contract as Promise. Other approaches to treaty theory are found in the writings of jurists and critical scientists. The court may order a “specific performance” requiring performance of the contract. In some circumstances, a court will order a party to honor its promise (a “specific performance” injunction) or issue an order called an “injunction” to have a party refrain from doing anything that would be contrary to the contract. A special service is available for the breach of a contract for the sale of land or real estate for reasons such that the property has a unique value. In the United States, the specific benefit in personal contracts, under the 13th Amendment to the U.S.
Constitution, is only legal “as punishment for a crime aimed at convicting the criminal in a blunt manner.”  Unilateral treaties are less widespread, in which one party makes a promise, but the other does not promise anything. In these cases, the acceptance of the offer is not required to notify the supplier of its acceptance. In a reward contract, for example, a person who has lost a dog could promise a reward if the dog is found, by publication or orally. Payment could additionally depend on the live return of the dog.. . .