What does investment contract mean
A proper investment contract is critical to protect the interests in a business relationship. The investor will want to make sure his investment is protected, and the company will want to make sure the funds are delivered smoothly and that the founders have protected their stake in the venture. This document serves as a binding contract between {Entrepreneur's Name}, hereafter known as "Entrepreneur," and {Investor's Name}, hereafter known as "Investor," signed {date}.Whereas the Entrepreneur is seeking an investment and the Investor is willing to fund the venture, therefore both parties agree to the following conditions: What Does an Investment Contract Mean? An investment contract is a legal agreement scheme wherein one party invests money in a common enterprise with the expectation of gaining a profit or return on investment (ROI).