Definitions of contract
a formal, legally binding agreement (either spoken or written) between two or more different people or groups
An engineering company in Staffordshire has secured a £4m contract to build parts for a bridge in America.
a legal document giving details of a formal, legally binding agreement (either spoken or written) between two or more different people or groups
An exclusion clause in a contract of sale can provide a defence only to the seller.
Phrase Bank for contract
The term of contract is five years.
He has just signed a five-year contract with Spurs.
Does this contract conflict with the contract that I’ve already signed?
The value of its contract amounts to €397m.
He received goods under a cancelled contract.
Some important contract terms are described in this section.
They will terminate the contract with effect from 1 September 2003.
He has been released from his contract.
The parties are involved in contract discussions.
This is a clear breach of contract.
Additional Notes for contract
Frequently Asked Question: What is the difference between a contract, agreement, deed, and a gift?
The use of the term agreement ranges in meaning from a simple mutual understanding (not necessarily enforceable by law) to a binding obligation.
A contract, used especially in law and business, is a binding agreement between two or more people or institutions that is enforceable by law.
A deed is a legal document that is signed and sealed and delivered to effect a transfer of property and to show the legal right to own that property.
A gift is a transfer of property from one person or institution to another with no charge or payment being made.
Common Mistakes for contract
It is not strictly correct that between is used for two things and among for more than two.
When exactly two entities are specified, between should always be used: “This contract is entered into between the Seller and the Purchaser.”
However, when more than two entities are involved or when the number of entities is unspecified, the word choice depends on what you want to say. Between should be used where the relationship is distinctly one-to-one: “The agreement was entered into between the Seller, the Purchaser and the Guarantor.”
Among should be used where the entities are considered as a group, mass or collectivity: “There is consensus among shareholders that this approach be adopted.”