response post - Good day class, A contract is an "Agreement between two entities, creating an enforceable obligation to do, or to refrain from doing, a particular thing." Batten, D. (Ed.). (2011). My ex and I started a couple businesses together one which is a bounce house/ fun house flatable that I will be using for this scenario. Once we got the business started we formulated contracts for our customers incase of damages, included with rules and safety guidelines to follow while using our equipment. Not having a contract agreement with customers renting a bounce house could have exposed us to several risks: Liability Issues: Without a clear contract, it's harder to manage liability for accidents or injuries that occur during use. Misunderstandings: A lack of written terms can lead to disputes over rental conditions, pricing, or responsibilities. Financial Loss: You may face issues with payment collections or unexpected costs without clear contractual terms. Damage or Loss: Without a contract outlining responsibilities, customers might not take proper care of the equipment, leading to potential damage or loss. A contract helps ensure all parties understand their responsibilities and reduces the risk of disputes and financial loss. One weekend, I had a bounce house rented out for a children's party. Unfortunately, during the event, the bounce house got pretty banged up due to rough play. Because I had a contract agreement in place, which included a clause abo