If the material is related to law, the legal definition must be used:

contract - http://legal-dictionary.thefreedictionary.com/contract

An agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration.
The existence of a contract requires finding the following factual elements: a) an offer; b) an acceptance of that offer which results in a meeting of the minds; c) a promise to perform; d) a valuable consideration (which can be a promise or payment in some form); e) a time or event when performance must be made (meet commitments); f) terms and conditions for performance, including fulfilling promises; g) performance.

Seems clear. Yup, its a contract.
Its "smart" because it does not require interpretation - that's my definition :)