A contract is a necessity for any business. It defines the terms of the relationship between involved parties and protects all. It is important for both the animal owner and the contract heifer grower to consider as many issues as possible in advance when drawing up an agreement or contract. The contract serves four major purposes. A management tool that requires joint planning between the grower and owner, describing how they are going to conduct their business and the implications of their choices. The largest benefit of this process is improving communications between all parties. Clearly defines expectations and responsibilities of each party before the relationship is entered into, thus decreasing the potential for conflicts during the period of the contract. Provides direction and legal recourse for the parties when conflicts occur. Provides documentation of a legal relationship to third parties such as bankers, regulators, or government agencies. The following areas can be considered for two types of contracts: to board heifers and to transfer ownership of the heifers with an option to buy back. The information provided here might not be complete for individual circumstances and is intended to simply provide suggestions based on accumulated experience. Furthermore, information contained herein does not constitute legal advice. A lawyer should be consulted to draw up the final contract to ensure that it is acceptable to both parties and is in a legal and binding form according to pertinent state laws.