Which body of law governs liabilities arising from contracts between parties?

• A. Constitutional Law
• B. Contract Law
• C. Regulatory Law
• D. Civil Law

Answer: (B)

Contracts create legally binding obligations, and the body of law that governs these liabilities is contract law. It defines how a contract is formed, what counts as an enforceable promise, how breaches are identified, and the remedies available when one party fails to perform—such as damages, specific performance, or rescission. Constitutional law covers government powers and fundamental rights, regulatory law concerns rules set by agencies to regulate conduct, and civil law is a broad category of private law that can include contract disputes but does not specify the creation and enforcement of contract obligations the way contract law does. So, when the issue is liabilities arising from contracts between parties, contract law is the precise framework applied.