Contract Definition: Usage, Phrases, and Interactive Practice

Learn how to define a “contract” through real-life examples that we come across in the workplace, agreements, and day-to-day scenarios.

As you expand your vocabulary in the area of “contract,” it allows you to discuss agreements, legal matters, and business situations with much greater clarity of perspective.

Related nouns: agreement deal document

Synonyms (contextual): pact arrangement

Common collocations: employment contract rental contract service contract

There are some combinations you can look for in order to find out how “contract” appears in normal as well as in professional English:

With adjectives: written contract formal contract binding contract

With verbs: sign a contract draft a contract terminate a contract

With nouns (noun + noun): contract terms contract clause contract negotiation

“Contract” is a term that can be used in different ways but is mostly found in business and legal contexts. Some of the most important uses of the “contract” along with their definitions and examples are given below.

• Sign a contract — to legally agree to the conditions of the deal.

  She signed the contract for the new apartment yesterday.

• Breach of contract — not fulfilling the commitments as stated in the contract.

  The company faced a lawsuit for breach of contract because of not meeting the delivery deadline.

• Terminate a contract — to cancel the contract before the time specified.

  The decision to terminate the contract was taken as the work was not up to the mark.

• Draw up a contract — to make a formal written agreement.

  The legal practitioner drew up a contract for the business partnership.

• Fulfilling the contract — to carry out all the duties and responsibilities agreed upon in the contract.

  The construction company fulfilled the contract sooner than expected.

This is a good way to practice recognizing the different meanings of the term “contract” and testing your understanding.

Here’s how to say “contract” in three widely spoken European languages:

Contracts, even if many times just paper or digital files, are always active players in day-to-day life. Their range is large and among the most frequent are the contracts of engagement for work, service, and trade.

• The earliest known written contracts.

  Around 2500 BCE, the Sumerians already had the practice of making sales, loans, and service agreements in written form on clay tablets. They were packed in clay “envelopes,” a primitive means of keeping contracts secure.

• The first modern employment contracts.

  Written employment contracts in Europe became the rule in the 17th Century, detailing the duties, wages and workers’ responsibilities, thus formalizing labor relations and protecting both sides: workers and employers.

• Digital contracts revolutionized agreements.

  The Internet and electronic contracts made it possible for people and businesses to sign agreements online, thus making legal commitments faster, more convenient, and universally accessible.

The concept of contract is mostly brought up in discussions about law, society, and human duties. Writers and thinkers also use this term to refer to the ideas of trust, obligation, and the rules which are the glue of humanity.