Law is systematic procedure designed to make rules which is imposed through institutions to better govern behaviour and social life. Law is made either by collective legislature or a single legislator which is known as “Statutes”. Private individuals can create contracts or agreements which results in a legal binding between two or more parties. Business law is set of laws that are enforced so that rights, sales, purchasing, employees’ rights, relations can be protected. In common law, the contract is considered as a promise. In business law is enforced to protect the interest of business. Business law is made to dictate that how businesses are made and how to run them. This law includes that how to start a business, how to manage, buy and sell. A good businessman should know all the laws which are applicable in business and how to use them. In business agreement or contracts are used for certain dealings. An agreement is defined as “between two or more parties a legal enforceable understanding and in agreement the process of give and take on negotiable terms is documented. While, a contract is a legal agreement between two parties and terms in a contract are usually voluntary and deliberate