long-term contracts

Long-term contracts are formal agreements between parties that set terms and conditions for a partnership or service over an extended period, typically one year or more. These contracts outline responsibilities, deliverables, pricing, and duration, providing stability and predictability for both sides. They are commonly used in business transactions, employment agreements, and supply deals. Benefits include locking in prices and expectations, fostering strong relationships, and ensuring consistent performance. However, they can also lead to challenges if circumstances change, as renegotiation may be required to adapt to new conditions.