Regardless of the type of business you run, an understanding of contract law is essential to creating strong business agreements that are legally enforceable in the event of a dispute. Below is a discussion on contract law. In the case of agreements expressly declared null and void, nothing can be claimed, except: A commercial contract is a legally binding agreement between two or more persons or organizations. Most treaties are bilateral. This means that each party has made a promise to the other. When Jim signed the contract with Tom`s Tree Trimming, he promised to pay the contractor a certain amount of money once the job was done. Tom, in turn, promised Jim to complete the work outlined in the agreement. This shows that the consent of the party who has the discretion to reject it was not free. .