A business contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a specific transaction or relationship. These contracts can cover various aspects, such as the sale of goods, services, or employment terms. They ensure that all parties understand their rights and obligations, helping to prevent misunderstandings and disputes. Contracts typically include essential elements like offer, acceptance, and consideration, which is the value exchanged between parties. They can be written or verbal, but written contracts are generally preferred for clarity and legal protection. Properly drafted contracts help businesses operate smoothly and maintain professional relationships.