A legal agreement between two or more parties, specifying the actions to be taken and payments to be made by each party. A contract may also specify how any dispute over its interpretation will be resolved, for example by arbitration or legal action. Contracts may be contingent, that is, may stipulate that actions shall be taken only in specific circumstances, as for example in insurance policies. The terms permitted in legally enforceable contracts are governed by legislation. See also forward contract; futures contract; implicit contract; incentive contract; service contract.