contract

1. A binding agreement between two or more parties that become obligated to do or not do something. See also oral contract, parol contract.
2. In futures trading, an agreement between two parties to make and take delivery of a specified commodity on a given date at a predetermined location.
3. In options trading, an agreement by the writer either to buy (if a put) or to sell (if a call) a given asset at a predetermined price until a certain date. The holder of the option is under no obligation to act.