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contract creates legal obligations between two or more parties individuals businesses institutions etc involved in the contract contracts are agreements to exchange something of value usually goods or services that are enforceable in court it is important to include the appropriate information in a contract to protect all parties and ensure fairness part number one understanding contract fundamentals step number one determine whether you need a contract if you are exchanging something of docHub value with someone such as your labor or services intellectual property or material goods you should have a contract in place for many people common situations that involve contracts include purchasing a home selling or buying a car or beginning employment other common situations could include hiring a construction crew to remodel your house offering your services for a certain period of time or publishing creative work such as a book step number two be aware of the basic requirements of a
