Contracting is an integral part of doing business in any industry. A “contract” is a legally enforceable agreement – an exchange of promises for which the law can provide a remedy if the promises are not kept. It may be an agreement to pay something, to do something, to not do something, to give or receive something, or to warrant something. A contract may be written down, or it may be verbally agreed; it may be a formal document that is negotiated over many months.

In a procurement context, it is the process of arriving at an agreement on the conditions of contract, through discussions between buyer and seller.