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contract definition - finance
A legal agreement that sets up the terms for a purchase or sale of property or rights, or outlines an agreement about a common business venture or other business deal. Part of a contract is the receipt of money, known as lawful consideration. In general, for a contract to be considered valid, it must be entered into by competent parties, must pertain to a legal transaction, and must possess mutuality and a meeting of minds.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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