A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship. It establishes the rights and obligations of each party and provides a framework for resolving disputes. Contracts can be written or verbal, but written contracts are generally preferred as they provide a clear record of the agreement. Some common types of contracts include employment contracts, rental agreements, purchase agreements, and service contracts. To be enforceable, a contract must meet certain requirements, such as mutual consent, consideration, legality, and capacity.