The origins and authority that influence and regulate the ideas, guidelines, and laws that apply to contracts are referred to as the sources of contract law. These resources provide the rules and foundation for how contracts are created, interpreted, and upheld legally. For people, companies, and legal experts engaged in contractual transactions and disputes, understanding these sources is essential. Legislation and common law are the two major categories that may be used to classify the basic origins of contract law. Statutes passed by legislative bodies, such as national or state governments, that particularly address issues relating to contracts are included in legislation. These laws may set out fundamental rules of contract law, provide conditions for contracts to be formed, and govern particular aspects of contracts. The common law, on the other hand, results from court rulings over time. Statutes, precedents, and legal concepts are interpreted and used to create common law principles. Courts look to earlier rulings, sometimes referred to as case law or precedents, for direction and to create legal principles that will be used in subsequent cases.
