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A contract is an agreement between 2 or more people that is enforceable and binding. Contracts can be both oral and in writing.

As with any business transaction, be sure to read all agreements, guarantees, and instructions before signing. Do not be pressured into signing. Do not be pressured into signing an agreement before you are ready and you understand all terms and conditions. Make sure all oral promises are put in writing. Be wary of vaguely worded provisions, exclusions or limitations which could pose a problem later. Never sign a contract with sections left blank. You may also wish to have your legal counselor review the contract before signing.

Consumers enter into many contracts each day since something as simple as buying a newspaper in the store is considered a contract.

If consumers thought of every purchase they made as being a contract, they would possibly ask more questions and thus avoid future problems.

The FTC's Trade Regulation Rule states a consumer has three business days to cancel a contract (for over $25.00) signed at a private residence, motel, or other temporary location. This "cooling-off" period applies to cash as well as credit transactions. The seller is REQUIRED to provide the buyer "Notice of Cancellation" papers at the time of the transaction. (FTC Rule 16-CFR-429 and IN Code24-5-10-1 thru 18 and IN Uniform Credit Code 24-4.5-2-501 & 502)

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