{"ok":true,"canonical_url":"https://dealroom.so/glossary/contract","api_url":"https://dealroom.so/api/public/glossary/contract","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"contract","term":"Contract","group":"People and paperwork","definition":"A legally binding agreement between two or more parties, outlining their rights and obligations. In an acquisition, you'll review all significant contracts to understand ongoing commitments and revenue streams.","what_it_means":"During due diligence, scrutinize customer contracts, vendor agreements, leases, and employment contracts. Pay attention to terms like renewal, termination clauses, and change of control provisions. Ensure contracts are assignable to you, or that new ones can be easily established post-closing.","url":"https://dealroom.so/glossary/contract","official_sources":[],"related":[{"slug":"renewal-term","term":"Renewal term","url":"https://dealroom.so/glossary/renewal-term"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"joint-venture-agreement","term":"Joint venture agreement","url":"https://dealroom.so/glossary/joint-venture-agreement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"How does a lender determine affiliation when a prior owner retains less than 20% equity and a consulting contract?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-affiliation-when-a-prior-owner-retains-less-than-20-equity-and"},{"question":"What specific conditions trigger affiliation due to contractual relationships or franchise agreements?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-trigger-affiliation-due-to-contractual-relationships-or-franchise"},{"question":"When does a prior contractual relationship create affiliation for 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-a-prior-contractual-relationship-create-affiliation-for-7-a-size-determination"},{"question":"When does a contractual relationship between two businesses trigger affiliation for size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-contractual-relationship-between-two-businesses-trigger-affiliation-for-size-s"},{"question":"Can I use an SBA 7(a) loan to acquire a business that relies heavily on independent contractors instead of employees?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-acquire-a-business-that-relies-heavily-on-independent-contrac"},{"question":"What if the business I'm acquiring relies heavily on government contracts for revenue?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-relies-heavily-on-government-contracts-for-revenue"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Contract","url":"https://dealroom.so/glossary/contract","source_type":"DealRoom Data"}}