A legal business contract is an agreement between two entities, setting out their respective rights and obligations. It typically includes specific terms and conditions that govern the way the parties will conduct business together and provides certainty in areas such as price, delivery time, product quality and other matters of mutual interest. The contract should specify any dispute resolution mechanisms to be used if disagreements arise, and ensure that all parties are aware of their obligations under the contract. Contracts are essential for ensuring that all parties involved understand their roles and responsibilities, and can help prevent misunderstandings or disputes down the line.