Contract Components are legally binding arrangements or agreements between two parties, typically involving a customer and supplier. They specify the terms of trading, including rights and obligations of both parties, as well as the performance standards for the product or service being provided. Contract Components provide clarity on important issues such as payments, warranties and any possible termination provisions. In order to ensure these components are enforceable, it is essential for businesses to include their specific details in order to ensure that each party understands the agreement. A well-drafted Contract Component will help protect businesses from any potential losses and ultimately create trust between the two parties.