Homonym: Contract (Agreement)
A contract is a legally binding agreement between two or more parties. It outlines the rights and responsibilities of each party involved, ensuring that everyone understands what is expected. Contracts can be written or verbal, but written contracts are generally preferred for clarity and legal protection.
Contracts are commonly used in various situations, such as business transactions, employment agreements, and real estate deals. They often include specific terms, conditions, and deadlines, which help prevent misunderstandings. If one party fails to fulfill their obligations, the other party may seek legal remedies to enforce the contract or claim damages.