What is the definition of a contract?

The correct answer defines a contract as a legally enforceable agreement between two or more competent persons. A contract must involve parties that have the legal capacity to enter into an agreement, which means they are of sound mind, legal age, and not under duress or coercion.

Additionally, a contract is an agreement that outlines mutual obligations, which can be enforced in a court of law if one party fails to uphold their end of the deal. This enforceability is what distinguishes a contract from informal agreements or understandings that do not carry legal weight.

In contrast to the other options, the terms used in them either mischaracterize the fundamental nature of a contract or lack essential elements that would allow them to be classified as contracts. For instance, a non-binding agreement, an oral agreement without written consent, and an agreement based merely on trust would not meet the criteria of enforceable contracts, as they either lack mutual obligations, necessary formalities, or fail to establish a clear legal basis for enforcement.