What does a contract typically create between parties?

A contract typically establishes an obligation or legal relationship between the parties involved. This means that when a contract is formed, it sets forth specific rights and responsibilities that each party must adhere to. The law recognizes these obligations, and failure to meet them can result in legal consequences, including the potential for one party to seek damages or enforce the terms of the contract in court.

While contracts can indeed create a mutual understanding of intentions and reflect the parties' goals, what distinguishes a contract is its legal enforceability. It is the binding commitment that creates enforceable duties and rights, making option C the most accurate representation of what a contract fundamentally establishes. In contrast, options suggesting a hostile relationship or guaranteed benefits are not inherent characteristics of a contract but rather outcomes that could arise from the parties’ interactions or the nature of the agreement.