A contract the place one celebration commits to offering items or providers often for a specified interval, in trade for periodic funds from the opposite celebration. Think about a software program firm providing entry to its platform for a month-to-month payment, or {a magazine} writer delivering points to a subscriber’s handle; each transactions are formalized via such a legally binding doc.
Such an association provides predictability in income streams for the supplier and handy, ongoing entry for the consumer. Traditionally, these agreements supplied a secure monetary basis for companies, notably in publishing and utilities. Their enduring prevalence speaks to their capability for fostering lasting relationships.