Contracting is the process of creating a legally binding agreement between two or more parties. This agreement outlines the terms and conditions under which the parties will operate, including responsibilities, payment, and timelines. Contracts can be used in various fields, such as construction, employment, and services, ensuring that all parties understand their obligations. In a contract, each party typically agrees to provide something of value, known as consideration. If one party fails to meet their obligations, the other party may seek legal remedies. Common types of contracts include employment contracts, service agreements, and purchase contracts.