contract business definition
- A binding agreement between two or more parties that become obligated to do or not do something. See also oral contract, parol contract.
- In futures trading, an agreement between two parties to make and take delivery of a specified commodity on a given date at a predetermined location.
- In options trading, an agreement by the writer either to buy (if a put) or to sell (if a call) a given asset at a predetermined price until a certain date. The holder of the option is under no obligation to act.
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