> A contract is not a rule, it is an agreement between two parties. A good contract spells out the penalties for what happens when one party doesn't adhere to the terms.

Actually, contract law spells out the penalties for what happens when one party doesn't adhere to the terms; a contract may opt to do so for certain cases, but doing so doesn't make it a "good contract", there are costs and benefits to doing so, and whether it makes sense to do so depends on the context of the contract, the types of violations being addressed, whether the parties envision continuing the relationship after the violations addressed, and other factors.