As agents, they may under certain circumstances create liability to the principal in __________ and tort.

A contract is defined as an agreement between two or more parties that has a binding nature; in other words, a contract is an agreement with legal enforceability. It establishes and defines the roles and responsibilities of the people concerned.

First and foremost, one party makes an offer to another, which, if accepted by the party to whom it is made, results in the agreement. A contract is defined as an agreement that is legally enforceable in a court of law.

A contract requires at least two parties, one who proposes and another who accepts the proposal.
The contracting parties must aim to create legal responsibility for one another.
It must be documented in writing.
There must be meaning certainty. The parties' terms must be obvious to them, which means that nothing should be misinterpreted, and there must be agreement ad idem.
The contract should be capable of being fulfilled.

Thus, it is a contract that is being talked about here.

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