Contract law is defined as a set of rules that govern the contractual agreements between merchants or persons. A contract is an agreement between different parties that state their responsibilities and duties to each other. A liability in contract law is when certain conditions are written into a contract that makes a party liable. Licensing is the process of giving or getting official permission to do something. A license is an agreement through which a licensee leases the rights to a legally protected piece of intellectual property from a licensor — the entity which owns or represents the property — for use in conjunction with a product or service.