Contracts are Able to be enforced by law. agreements between two parties. Anything that is written into a An agreement that the law will enforce. is there for a reason, so it pays to read the fine print and understand all the terms and conditions. Knowing what is a Legally binding or effective. contract, how contracts work, and how to take action as a Under the Australian Consumer Law, a person who buys goods or services for less than $40 000 or for personal or home use., is important in this age when contracts affect us every day.