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A daycare contract is typically signed when parents hire daycare services for their children. Daycares are businesses that care for children while parents work or attend to other obligations. There are various types, including 24-hour daycare for overnight stays, center-based daycare where children are dropped off at commercial locations, and home-based daycare at residential sites. Infant and toddler care tends to be more comprehensive and costly. Daycares must adhere to state regulations regarding building safety and adult-to-child ratios, and they must hold a valid license to be listed in the state’s daycare registry. Each state has specific laws governing these facilities.