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A daycare contract is typically signed when a parent hires daycare services for their child. A daycare is a business providing care for children while parents are at work or fulfilling other obligations. There are various types of daycare options: 24-hour care for overnight stays, center-based care where children are dropped off at a commercial location, home-based care at residential locations, and full-service daycares which are usually more expensive. Daycares are regulated by each state's child care administration, with specific laws regarding building and safety codes and adult-to-child ratios. Each daycare must hold a license and be in good standing to be listed in the state's daycare registry.