A contract (or agreement) is a legally binding document between two or more parties that outlines specific terms and conditions. It serves to ensure that all parties understand their rights and responsibilities, providing a framework for the relationship. Contracts can cover various topics, such as employment, sales, or services, and must include essential elements like offer, acceptance, and consideration. To be enforceable, a contract must be clear and mutual, meaning all parties agree to the terms. If one party fails to fulfill their obligations, the other party may seek legal remedies. Common types of contracts include leases, purchase agreements, and employment contracts.