A contract is a legal instrument that defines the rights and responsibilities of:

• A. Each party
• B. The government only
• C. The contractor only
• D. The project manager only

Answer: (A)

A contract is a legally binding agreement that defines the rights and responsibilities of all parties involved. It spells out what each party must do, what they are entitled to receive, and the terms for performance, payment, timelines, and acceptance. By outlining duties and entitlements for everyone who signs, the contract creates mutual obligations that guide how the work is carried out and what happens if something goes wrong. This multi-party focus is why it’s the best answer: a contract involves more than one entity and assigns rights and responsibilities to each, not just to a single party. The other options describe responsibilities of individual roles, which doesn’t capture the collaborative, reciprocal nature of contracts.