Which of the following is a binding agreement between two or more persons that is enforceable by law?

A contract is a binding agreement between two or more parties that is enforceable by law. To qualify as a contract, the agreement must have certain key elements, including offer, acceptance, mutual consent, consideration (something of value exchanged), and a legal purpose. This enforceability aspect distinguishes contracts from other types of agreements that may not carry legal weight, such as a simple agreement or understanding that lacks these formalities.

An agreement refers to a mutual understanding between parties, but it does not always fulfill the legal criteria necessary for enforcement. A promise, while indicating an intention to act, does not constitute a legally binding obligation unless it meets specific requirements to be considered a contract. An understanding may imply a shared interpretation or comprehension between parties but, like an agreement, typically lacks the necessary structure to be legally enforceable. Therefore, a contract stands out as the appropriate term for a legally binding agreement.