Every part of this sentence before and after “it is an agreement on what is expected” is incorrect. A contract may lay out consequences of noncompliance, but it is contract law, not the terms of the contract that will set the actual consequences; those set in the contract are valid in only limited circumstances, and only then if their amount is appropriate under the law. And the manner of enforcement may be too compel performance of the obligations in the contract, see the remedy called “specific performance”.