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Business English vocabulary · Negotiations

Contract

Meaning in business english, with examples

/ˈkɑːntrækt/nounCore term

In business english, contract means: A formal written agreement between two or more parties that sets out what each side must do and can be enforced by law.

In Turkish: sözleşme, kontrat, anlaşma

How it is used

You draw up, negotiate, sign, renew, break or terminate a contract. Employees can be 'on a fixed-term contract' or 'on a permanent contract'. Before signing, companies usually ask their legal team to review it.

Example sentences

  1. The contract runs for three years and can be renewed for another two.

  2. Legal still needs to review the contract before we sign it.

Common collocations

  • sign a contract
  • renew a contract
  • draw up a contract
  • terms of the contract
  • breach of contract
  • termsThe conditions of an agreement or contract that both sides accept, such as the price, payment dates, delivery and responsibilities.
  • NDAShort for non-disclosure agreement: a contract in which people or companies promise not to share confidential information they receive.
  • dealAn agreement between two or more sides, especially a business arrangement to buy, sell or work together on agreed terms.
  • clientA person or organization that pays a company or professional for services or advice, often over a long period.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Negotiations

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