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A daycare contract is signed when parents hire daycare services for their child. Daycare refers to a business that cares for children while parents work or meet other obligations. Types of daycare include 24-hour services for overnight care, center-based facilities where children are dropped off, home-based care in residential settings, and full-service centers that cater to infants and toddlers, typically at a higher cost. Each daycare is regulated by the state's childcare administration, which enforces building and safety codes and specifies adult-to-child ratios. All daycares must possess a license and be in good standing to be listed in their state's daycare registry.