What defines an agreement between two or more parties who have pledged to perform or refrain from performing some act?

The correct answer is defined as a contract, which is a legally binding agreement between two or more parties. In the context of real estate and business transactions, contracts outline the obligations each party has agreed to fulfill, whether it involves delivering a service, transferring property, or refraining from certain actions. A contract must have specific elements to be enforceable, including offer and acceptance, consideration (something of value), capacity to contract, and a lawful purpose.

Negotiations represent the discussions and deliberations that occur before a contract is finalized, but they do not constitute a binding agreement until all parties reach a consensus on the terms. A memorandum typically serves as a brief note or summary, which might outline points of a negotiation without the binding nature of a contract. An affidavit is a sworn statement made under oath, commonly used as evidence in court, but it does not represent an agreement between parties regarding future actions. This distinction clarifies why the designation of a contract is appropriate for defining such agreements.