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url: /glossary/contract.md
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## Contract & Policy

### Contract (legal concept)

“Contract” refers to the legal agreement between the insurer and the policyholder.

* It is the legal relationship creating rights and obligations.
* It exists once offer, acceptance, consideration, and consent are met.
* Used in legal analysis, legislation, and doctrine.

### Policy (insurance instrument)

“Policy” refers to the written insurance document that evidences and formalises the contract.

* It includes the policy schedule, terms and conditions, endorsements, etc.
* It is the operative document used in practice.
* Preferred in insurance drafting and operational clauses.

The policy may be individual or group-based, subscribed by an association for the PER (French Retirement Savings Plan).