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In legal terms, a contract is any agreement between parties to exchange things of value, such as goods and services for cash. A simple handshake agreement is legally binding, but its terms are not always provable if a dispute arises. However, you don't necessarily need pages upon pages of legalese. A basic contract agreement often works best for a simple business transaction.

Define the Scope of the Work - The terms constitute the body of the contract. Start off by clearly defining what it is the scope of the work or service you are to provide, and the timeline you propose to complete the work. Be specific. Don't simply say you will renovate a client's kitchen. Provide details of the cabinet designs, countertops, and other materials and work you will provide. If applicable, give a timeframe for each phase of a project.

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