The principles of contract law establish the fundamental rules that govern legally binding agreements between parties. These principles include offer and acceptance, where one party proposes terms and the other agrees; consideration, meaning both parties must exchange something of value; intention to create legal relations, ensuring that the agreement is meant to be legally enforceable; capacity, which requires parties to be legally competent to contract; consent, meaning the agreement must be made without coercion or fraud; and legality, ensuring the contract's purpose complies with the law. Together, these principles ensure fairness, predictability, and enforceability in contractual relationships.