Contract: meaning, definitions and examples

Used in formal business and legal settings to define a formal agreement between parties that are enforceable by law.

• The company signed a contract with the supplier for a year.
• The employment contract clearly outlines the duties and responsibilities of the position.

A general term for a mutual understanding or arrangement between parties, which may or may not be legally binding.

• They reached an agreement after several hours of negotiation.
• There was an agreement to share the resources equally.

An informal term often used in business to describe an arrangement or transaction, usually involving a financial aspect.

• They made a great deal on the new office space.
• The deal with the new client was finalized over lunch.

Typically used in a legal or religious context to describe a solemn agreement or promise. Often implies a moral or ethical obligation.

• The covenant between the church members dictated their community responsibilities.
• The land came with a covenant that it could not be developed for commercial use.

Often used for formal agreements between two organizations, states, or countries, usually with a sense of solemnity.

• The two states entered into a compact to manage the river's resources.
• The compact between the countries focuses on environmental protection.

A formal agreement, often legally binding, especially in business or legal matters.

• They signed a contract to supply the goods over the next year.
• The company has a contract with a local vendor.

General consensus or mutual understanding, often informal and used in everyday conversation.

• We need to agree on a time to meet.
• They all agreed that the plan was good.

To promise or bind oneself to a certain course of action, often requiring effort or dedication.

• She committed to helping the charity.
• He has committed to finishing the project by the end of the month.

To take on a responsibility or an activity, often suggesting a serious or substantial effort.

• He has decided to undertake a major renovation of his house.
• The scientist undertook the research project on climate change.

A formal necessity to do something, often mandated by rules or laws, suggesting a sense of duty. Can have a negative connotation if it implies compulsion.

• The contract obligates the company to deliver the products on time.
• You are obligated to pay taxes every year.