Contract

How it is used

The central word of commercial law. You enter into, sign, perform, breach and terminate a contract. 'Under the contract' means 'according to its terms'. As a verb, 'contract with' means to make a formal agreement with someone.

Example sentences

1. We cannot start the work until both sides have signed the contract.

2. Under the contract, the supplier must deliver the parts within 30 days.

3. The company has contracted with a local firm to maintain its servers.

Common collocations

• enter into a contract
• sign a contract
• breach a contract
• terminate a contract
• under the contract

Related terms

• agreementAn arrangement between parties about what each of them will do; it becomes a contract when the law treats it as binding.
• partyA person or organisation that has signed a contract or is directly involved in a legal agreement or dispute.
• clauseA numbered section of a contract that deals with one specific subject, such as payment, confidentiality or termination.
• breach of contractFailure by a party to do what it promised in a contract, for example paying late, delivering faulty goods or not delivering at all.
• considerationSomething of value that each party gives or promises in exchange for the other's promise, such as money, goods or services; common law requires it for most contracts.

This word in other fields

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

• contract · Business English
• contract · Sales & Retail
• contract · Law

More terms: Forming & Drafting Contracts

• offer
• acceptance
• binding
• enforceable
• draft
• negotiate
• counteroffer
• void
• letter of intent
• execute
• counterpart
• memorandum of understanding