CONTRACTS ARE USED to form relationships between parties for the sale of goods and services. People enter into contracts every day. Most of us never even think about the terms of everyday contracts or the rules governing those contracts. For example, you enter into a contract when you buy a cup of coffee at a local coffeehouse. Many people buy things online. The terms of those purchases are governed by a contract.

This chapter discusses contract law. It is important to understand the basics of traditional contract law so you can apply them to online contracts. This chapter also discusses special types of online contracts. Finally, this chapter introduces some emerging information security issues in contracting for services in cyberspace.