The term "compact" refers to something that is small in size or takes up little space. It can describe physical objects, like a compact car, which is designed to be efficient and easy to maneuver in tight spaces. Compact items are often favored for their convenience and portability. In a different context, "compact" can also refer to an agreement or contract between parties. For example, a compact may outline the terms of cooperation between two organizations. This type of compact ensures that all parties understand their responsibilities and commitments, promoting clarity and collaboration.