Final answer:
Contracts are legally binding agreements that establish the terms and conditions between parties. They are typically set forth in written or spoken terms, ensuring clarity and understanding for all involved.
Step-by-step explanation:
Contracts are legally binding agreements that establish the terms and conditions between parties. They are typically set forth in written or spoken terms, ensuring clarity and understanding for all involved. The language used in contracts can be complex and may require interpretation, but it is important to ensure that the terms are clearly communicated and agreed upon.