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 provided, or employment terms. They help ensure that all parties understand their rights and responsibilities, reducing the risk of misunderstandings. Contracts can be written or verbal, but written contracts are generally preferred because they provide clear evidence of the agreement. Common elements of a business contract include offer, acceptance, consideration, and mutual consent. Properly drafted contracts can protect the interests of all parties involved.