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A daycare contract is signed when a parent hires daycare services for their child. Daycares are places where parents can leave their children while they work. There are different types of daycares, such as 24-hour, center-based, gym, and home-based. Daycares are regulated by each state's child care administration office and must be licensed and in good standing to be in the state's daycare registry. State laws also dictate safety codes and adult-to-child ratios.