Investment Contracts

An investment contract is an agreement where an individual invests money into a project or venture with the expectation of earning a profit. It specifies the terms, such as the amount invested, the expected return, and how profits will be shared or paid out. The contract legally binds both parties, ensuring clarity on responsibilities and rights. Essentially, it formalizes the relationship between the investor and the enterprise, making sure everyone understands the investment's nature, risks, and potential rewards. Properly drafted, it helps prevent misunderstandings and provides legal protection for both sides.