Contract or legal transaction. The term is used to refer to the conclusion of contracts of sale, loan, and marriage, and it denotes legal action that becomes effective upon the acceptance of an offer. The contract should reflect the mutual understanding and agreement of the parties and must be entered into freely and without coercion. The term is also used to refer to legal documents or deeds, such as title to property or a will. In political uses, it refers to a contract for governance between ruler and ruled as evidenced by the convocation of a session or meeting.