A contract is a legally binding agreement between two or more parties. Contracts are essential in the day-to-day world of business. While oral contracts are binding in some cases, it is best to not rely on a verbal agreement when your business is at stake. Contract law varies significantly from state-to-state, and it is important to have an attorney familiar with the applicable laws drafting any contracts. When the parties are located in different states, it becomes even more important to make sure things are written properly.
Licenses are one form of contract, granting (or receiving) the right to use the intellectual property. Licenses require a good working knowledge of intellectual property laws as well as contract law--for example, companies can lose a trademark by inappropriate licensing.