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Promise: Definition, Example and Related Terms

What is a Promise ?

A promise is a commitment made by one party to another, affirming that a specific act will be performed or a particular outcome will be achieved. In the realm of contracts and legal agreements, a promise is a fundamental component that forms the basis of an obligation or duty that one party agrees to fulfill for another.

Promises are crucial in commercial settings as they form the underlying assurance upon which contracts are built. For example, in a sales agreement, the seller may promise to deliver goods, while the buyer promises to pay for them. These mutual promises represent the duties each party is bound to perform under the contract.

Failure to fulfill a promise as stipulated in a contract can lead to legal consequences, such as a breach of contract claim. Hence, understanding and clearly defining promises in any agreement is vital for ensuring that both parties have a clear expectation of their respective obligations.

Promises in contracts can be explicit, with terms clearly laid out in writing, or they can be implied, based on the actions, conduct, or relationship between the parties. Either way, they are enforceable commitments that form an essential aspect of contract law.

Example(s)

  • Scenario Description
    A construction company enters into a contract to build a new office building for a client. The promise made by the construction company is to complete the construction within a set timeline and according to specified quality standards. The client, in turn, promises to make payments as per the agreed schedule. Each of these promises is binding and forms the primary obligations in the contract.
    A freelance graphic designer is contracted to create a logo for a startup. The designer's promise is to deliver a completed logo design that meets the client's requirements within a specified timeframe. Conversely, the client promises compensation for the designer's work upon satisfactory completion of the task. These promises form the legal basis of their contract.