Would you please explain for me what a business contract implies ?   A contract is an agreement which is binding on both parties mutually . A contract might be formal or informal , oral or written . An implemented contract is one which has been fully executed by both sides ; an executive contract is one which is going to be performed . They are enforceable by laws and any party who defaults the contract may be sued and forced to make compensation .   What are the purposes of contract ?   In an ordinary contract , the objective of a contract might be relatively simple , indicating the description of commodity , price , quantity , terms of payment and etc .   When we draft a contract , which points should we pay special attention to ? 