Law of Contract Act - Cap 345 - R.E. - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Scribd is the world's largest social reading and publishing site. Search Search Contract law is a body of law that governs, enforces, and interprets agreements related to an exchange of goods, services, properties, or money. According to contract law, an agreement made between two or more people or business entities, in which there is a promise to do something in return for a gain or advantage, is legally binding. The surety is discharged by any contract between the creditor and surety by release or discharge of the principal debtor, by which the principal debtor is released, or by any act or principal debtor omission of the creditor, the legal consequence of which is the discharge of the principal debtor.