What is the legal definition of a contract under Texas law?

Under Texas law, a contract is defined as a mutual agreement between two or more parties that establishes enforceable rights and obligations. This definition highlights the essential components of a contract: mutual assent, which shows that the parties have agreed to the terms, and the enforceability aspect, which indicates that the agreement can be upheld in a court of law.

The emphasis on the mutual agreement and enforceable nature of the contract is critical. It means both parties must agree to the terms, and there should be a clear intention to create a legal obligation. This is foundational to ensuring that contracts serve their role in creating predictable and reliable legal relationships.

Other options deviate from this definition. A verbal agreement, while potentially a contract, must still meet the elements of enforceability, which is not captured in the second option. The third option suggests an informal understanding without reciprocity, which lacks the necessary elements of consideration and mutual agreement that are essential to constitute a valid contract. The fourth option describes a unilateral promise without expectation of performance, failing to represent the mutuality inherent in a contract. Thus, the first choice accurately reflects the legal definition of a contract under Texas law.