What is defined by FAR Part 2 as a “contract”?

The definition of a "contract" as outlined in FAR Part 2 is a mutually binding agreement that obligates the seller to provide supplies or services. This definition emphasizes the legal nature of the agreement, highlighting that it is not simply an informal understanding or an agreement that lacks enforceability. A contract creates a legal obligation for both parties involved—specifically, the seller is required to deliver the agreed-upon supplies or services, and the purchaser is obligated to compensate the seller for those goods or services.

In a contracting context, this definition underscores the formal nature of contracts within federal acquisitions, wherein both compliance with laws and regulations and adherence to specific terms are paramount for effective contract management. The requirement of mutual obligation is a critical aspect, as it distinguishes contracts from other types of agreements that may not hold legal weight.

In contrast, other options present scenarios that do not describe contracts under FAR definitions. For instance, an agreement that is not legally binding does not meet the criteria for a contract. Similarly, informal agreements lack the necessary enforceability to qualify as contracts, and a document focused solely on the purchase of specific goods fails to capture the broader scope encapsulated by the term “contract,” which includes a full range of supplies and services.