Which entity has the authority to set terms for contract enforcement?

The authority to set terms for contract enforcement primarily lies with the courts of law. Courts have the responsibility to interpret contracts, determine their validity, and enforce the legal agreements made between parties. When disputes arise, it is the judiciary's role to apply relevant laws and precedents to ensure that contractual obligations are honored and provide remedies when breaches occur.

The judiciary interprets both statutory laws and case law to establish the framework within which contracts operate. They determine issues like the legality of the terms, the parties' capacity to contract, and whether any unconscionable or illegal provisions exist. In doing so, courts ensure that the enforcement of contracts aligns with public policy and legal standards.

While other entities, such as the legislative branch, may create laws related to contracts, it is the courts that ultimately enforce those laws and determine the specifics of contract terms in individual cases. The executive branch does not play a direct role in contract enforcement, and while the Federal Trade Commission addresses unfair trade practices and related consumer protection issues, it does not have the authority to set terms for all contracts. Therefore, the courts are the correct answer regarding authority over contract enforcement.