A contract is simply a legally binding agreement between parties to do or not do something. Consumers enter into contracts for many reasons. An agreement to buy a car or buy a home typically involves a contract. If one hires a service to maintain his or her lawn, a contract is created. There are three elements that must be present for a contract to exist: an offer, an acceptance, and consideration.
There are literally thousands of different types of contracts and agreements. A few of some common ones are: