1. Contractual duties are imposed and defined by the contract itself and they are owed to the other party to the contract.
In contrast, the duties embraced by the law of torts are imposed by general rules of law and they are owed to all and sundry.

2. Historically, contractual liability rested upon the notion that someone who suffers a loss in reliance upon the promise of another ought to receive compensation for the loss. Today, that liability can be explained by the parties' intention to create legal obligations.
Jones v. Vernons Pools 1938

3. Three ways in which contractual obligations arise:
a) Upon agreement (consensual contract).
b) Upon the fact that A has done some act in reliance upon a promise by B (finder of a lost dog).
c) Upon the mere execution of a deed or 'specialty' (gratuitous contracts).

4. Types of Contracts:
a) Simple contracts: two parties agreeing (3. a) and b)). Hence the definition of contracts as 'legally binding agreements'. The second kind is also called 'unilateral'.
b) Specialty contracts. Thus, a gratuitous promise may become actionable in contract if it is enshrined in a deed. The Law of Property (Miscellaneous Provisions) Act 1989 has simplified the creation of obligations by deed.