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Our members strongly recommend contracts and do not sell our dogs without them. The common myth around some uninformed dog breeders, is that Contracts are not worth the paper they are written on. Fact - Any document signed by the parties involved is legally binding in a court of law.
A properly drafted and executed breeding contract will clearly define all the important terms of the agreement, and can often prevent a disagreement, or even potential litigation, down the road. The breeding contract also provides a means for enforcing the agreement between the mare and stallion owner.
The stud fee is set by the stud dogs owner. The method of payment may vary. The stud owner may request a cash fee, pick of the litter, one or more puppies from the resulting litter, or other similar method of compensation. The collection of the stud fee is the stud owners responsibility.
If purchasing a purebred puppy, be aware the Canadian Kennel Club makes is against their Code of Conduct to sell purebred puppies without pedigree papers, or to sell puppies before 8 weeks, and it is illegal to ask you to pay extra for the registration.
The contract should contain information about the puppy, as well as both yours and the breeders details. It should also contain details of warranty or health claims made by the breeder, and any responsibilities or agreements that you make to the breeder.
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People also ask

Having a well written contract that both parties enter into in good faith is legally binding.
I certainly would not buy a dog with some of the contract provisions I have heard about. While contract provisions are generally enforceable, the cost of litigation is prohibitive from a breeders perspective.
While contracts are as individual as the breeders who sign them, they contain some basics you might expect, such as the puppys AKC registration number, the name and registration numbers of the sire and dam, and, of course, the purchase price.