contract

con·tract   (kŏn'trākt')    n.   An agreement between two or more parties, especially one that is written and enforceable by law. See Synonyms at bargain. The writing or document containing such an agreement. The last and highest bid of a suit in one hand in bridge. The number of tricks thus bid. Contract bridge. The branch of law dealing with formal agreements between parties. Marriage as a formal agreement; betrothal. Games The last and highest bid of a suit in one hand in bridge. The number of tricks thus bid. Contract bridge. A paid assignment to murder someone: put out a contract on the mobster's life. v.   (kən-trākt', kŏn'trākt') con·tract·ed, con·tract·ing, con·tracts v.   tr. To enter into by contract; establish or settle by formal agreement: contract a marriage. To acquire or incur: contract obligations; contract a serious illness. To reduce in size by drawing together; shrink. To pull together; wrinkle. Grammar To shorten (a word or words) by omitting or combining some of the letters or sounds, as do not to don't. v.   intr. To enter into or make an agreement: contract for garbage collection. To become reduced in size by or as if by being drawn together: The pupils of the patient's eyes contracted. Phrasal Verb(s): contract outTo engage a person outside an organization by contract to undertake or produce. [Middle English, from Latin contractus, past participle of contrahere, to draw together, make a contract : com-, com- + trahere, to draw.] con·tract'i·bil'i·ty, con·tract'i·ble·ness n., con·tract'i·ble adj.

contract

A legally binding agreement between two or more parties.

contract 

contract

1. In futures trading, an agreement between two parties to make and take delivery of a specified commodity on a given date at a predetermined location.

2. In options trading, an agreement by the writer either to buy (if a put) or to sell (if a call) a given asset at a predetermined price until a certain date. The holder of the option is under no obligation to act.

Main Entry: ¹con·tract
Pronunciation: 'kän-"trakt
Function: noun
Etymology: Latin contractus from contrahere to draw together, enter into (a relationship or agreement), from com- with, together + trahere to draw
1 : an agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other's duty or a remedy for the breach of the other's duty; also : a document embodying such an agreement —see also ACCEPT, BARGAIN, BREACH, CAUSE 4, CONSENT, CONSIDERATION, DUTY, MEETING OF THE MINDS, OBLIGATION, OFFER, PERFORMANCE, PROMISE, RESCIND, SOCIAL CONTRACT, SUBCONTRACT Uniform Commercial Code in the IMPORTANT LAWS section
NOTE: Contracts must be made by parties with the necessary capacity (as age or mental soundness) and must have a lawful, not criminal, object. Except in Louisiana, a valid contract also requires consideration, mutuality of obligations, and a meeting of the minds. In Louisiana, a valid contract requires the consent of the parties and a cause for the contract in addition to capacity and a lawful object.

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accessory contract
: a contract (as a security agreement) made to secure the performance of another obligation —compare PRINCIPAL CONTRACT in this entry

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ad·he·sion contract
/ad-'hE-zh&n-/
: CONTRACT OF ADHESION in this entry

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aleatory contract
: a contract in which either party's performance is dependent on an uncertain event

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bilateral contract
: a contract in which both parties have promised to perform —compare UNILATERAL CONTRACT in this entry

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commutative contract
in the civil law of Louisiana : a contract in which the obligations of the parties to perform are equal to each other in value

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constructive contract
: QUASI CONTRACT in this entry

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contract for deed
: LAND INSTALLMENT CONTRACT in this entry

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contract implied in fact
: IMPLIED CONTRACT 1 in this entry

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contract implied in law
: QUASI CONTRACT in this entry

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contract of adhesion
: a contract that is not negotiated by the parties and that is usually embodied in a standardized form prepared by the dominant party

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contract under seal
: a contract that does not require consideration in order to be binding but that must be sealed, delivered, and show a clear intention of the parties to create a contract under seal
NOTE: Contracts under seal were in use long prior to the development of the requirement of consideration. They originally usually were impressed with an actual seal, but today the word seal, the abbreviation L.S., or words such as “signed and sealed” or “witness my seal” may take the place of the seal. Without a clear indication of the parties' intention, however, the presence of a seal, such as a corporate seal, is insufficient to create a contract under seal. Contracts under seal have a substantially longer statute of limitations than contracts based on consideration.

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des·ti·na·tion contract
: a contract for goods stipulating that the seller assumes the risk of loss from damage to the goods until they arrive at the destination specified in the contract —compare SHIPMENT CONTRACT in this entry

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du·al contract
: one of two contracts made by the same parties with regard to the same transaction; specifically : one of two contracts made with regard to the sale of real estate of which one states an inaccurately high price for the purpose of defrauding a lender into providing a larger loan

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executory contract
: a contract that sets forth promises that are not yet performed

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express contract
: a contract created by the explicit language of the parties —compare IMPLIED CONTRACT in this entry

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formal contract
: a contract made binding by the observance of required formalities regardless of the giving of consideration; specifically : a contract that is a contract under seal, a recognizance, a letter of credit, or a negotiable instrument called also special contract specialty

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forward contract
: a privately negotiated investment contract in which a buyer commits to purchase something (as a quantity of a commodity, security, or currency) at a predetermined price on a set future date called also forward

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futures contract
: a contract purchased or sold on an exchange in which a party agrees to buy or sell a quantity of a commodity on a specified future date at a set price : FUTURE called also future contract

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gratuitous contract
in the civil law of Louisiana : a contract in which one party promises to do something without receiving anything in return —compare ONEROUS CONTRACT in this entry

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guaranteed investment contract
: an investment contract under which an institutional investor deposits a lump sum of money (as a pension fund) with an insurance company that guarantees the return of principal and a specific amount of interest at the end of the contract term; also : such a contract considered as an investment guaranteed investment contract> called also GIC

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il·lu·so·ry contract
/i-'lü-s&-rE-, -z&-/
: a contract in which at least one party makes an illusory promise

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implied contract
1 : a contract that a court infers to exist from the words and conduct of the parties called also contract implied in fact implied in fact contract —compare EXPRESS CONTRACT in this entry
2 : QUASI CONTRACT in this entry

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implied in law contract
: QUASI CONTRACT 1 in this entry

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informal contract
: any contract that is not a formal contract called also simple contract

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innominate contract
in the civil law of Louisiana : a contract that is given no special designation as to its purpose —compare NOMINATE CONTRACT in this entry

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installment contract
: a contract in which performance is tendered in installments (as by separate periodic delivery of goods)

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investment contract
: an agreement or transaction in which a party invests money in a common enterprise the profits from which are derived from the efforts of others

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labor contract
: a contract between an employer and a labor union reached through and containing the results of collective bargaining : COLLECTIVE BARGAINING AGREEMENT

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land installment contract
: a contract for the purchase of real property in which the seller retains the deed to the property or otherwise continues to have an interest in it until the buyer makes payments in installments equal to the full purchase price or as much of the purchase price as agreed upon called also contract for deed land contract

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maritime contract
: a contract directly relating to the navigation, business, or commerce of the high seas or other navigable waters and falling within the jurisdiction of the admiralty court

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nom·i·nate contract
in the civil law of Louisiana : a contract give a special designation (as sale, insurance, or lease) —compare INNOMINATE CONTRACT in this entry

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oner·ous contract
in the civil law of Louisiana : a contract in which each party obligates himself or herself in exchange for the promise of the other —compare GRATUITOUS CONTRACT in this entry

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option contract
: a contract in which a time period is specified within which an offer must be accepted

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out·put contract
: a contract in which the buyer agrees to buy and the seller agrees to sell all of a kind of goods that the seller produces

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principal contract
: a contract from which a secured obligation arises —compare ACCESSORY CONTRACT in this entry

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quasi contract
1 : an obligation that is not created by a contract but that is imposed by law to prevent the unjust enrichment of one party from the acts of another party called also contract implied in law implied in law contract
2 in the civil law of Louisiana : a lawful and voluntary act that benefits another for which the law imposes an obligation on the beneficiary or a third party to compensate the actor —compare OFFENSE 2

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re·quire·ments contract
: a contract in which the seller agrees to sell and the buyer agrees to buy all of a kind of goods that the buyer requires

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ship·ment contract
: a contract in which the seller bears the risk of loss from damage to the goods only until they are brought to the place of shipment —compare DESTINATION CONTRACT in this entry

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simple contract
: INFORMAL CONTRACT in this entry

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special contract
1 : a contract containing provisions and stipulations not ordinarily found in contracts of its kind
2 : FORMAL CONTRACT in this entry

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sub·sti·tut·ed contract
: a contract between parties to a prior contract that takes the place of and discharges the obligations under the prior contract —compare ACCORD 3, NOVATION

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syn·al·lag·mat·ic contract
in the civil law of Louisiana : BILATERAL CONTRACT in this entry

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unilateral contract
: a contract in which only one party is obligated to perform —compare BILATERAL CONTRACT in this entry

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yellow–dog contract
: an illegal employment contract in which a worker disavows membership in and agrees not to join a labor union in order to get a job
2 : an insurance policy
3 : the study of the law regarding contracts —usually used in pl.

Main Entry: con·tract
Pronunciation: k&n-'trakt also 'kän-"trakt
Function: transitive verb
1 : to become affected with<contract pneumonia>
2 : to reduce to smaller size by or as if by squeezing or drawing together <contract a muscle> contract intransitivesenses
: to draw together so as to become diminished in size; also : to shorten and broaden contracts in tetanus> —con·tract·ibil·i·ty /k&n-"trak-t&-'bil-&t-E, "kän-/ noun plural -ties
—con·tract·ible /k&n-'trak-t&-b&l, 'kän-"/ adjective

contract con·tract (kən-trākt', kŏn'trākt')
v. con·tract·ed, con·tract·ing, con·tracts

1. To reduce in size by drawing together.

2. To become reduced in size by or as if by being drawn together, as the pupil of the eye.

3. To acquire or incur by contagion or infection.