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David Malan from the California Institute of Technology explains the distinction between a grant and a contract. He notes that there are two approaches: legal and federal definitions, which may overlap. To clarify differences, one must determine their specific needs. Legally, a contract is defined by an agreement involving an exchange of value between competent parties and certain legal characteristics, making it enforceable. Importantly, this legal definition does not dictate whether the agreement is categorized as a grant or a contract; rather, it focuses on its enforceability and characteristics under the law.
