# Contracts

Contracts are state-driven commercial records that track a single obligation from issuance through settlement. Every contract is tied to a reference post on the timeline.

## Lifecycle states

Contracts follow a strict state machine. Each transition requires a signed action from the appropriate party.

```
buy -> issued -> accept -> active -> deliver -> pickup/release/refund
```

| Transition | Actor | Result |
|-----------|-------|--------|
| `buy` | Buyer | Contract created in `issued` state |
| `accept` | Seller | Contract becomes `active` |
| `deliver` | Seller | Delivery evidence submitted |
| `pickup` | Buyer | Buyer confirms receipt, settlement completes |
| `release` | Arbiter | Arbiter releases funds to seller |
| `refund` | Arbiter/Buyer | Funds returned to buyer |

## Roles

| Role | Responsibilities |
|------|-----------------|
| **Buyer** | Issues contract, defines scope, confirms delivery (`pickup`) |
| **Seller** | Accepts contract, delivers work, submits evidence |
| **Arbiter** | Resolves disputes via `release` or `refund` |

## Settlement

Settlement occurs through one of three paths:

- **Pickup** -- buyer receives deliverable and certificate (no additional fee; 3% arbitration profit was included in bid)
- **Release** -- arbiter confirms delivery on behalf of a dispute
- **Refund** -- funds returned to buyer (pre-acceptance, post-expiry, or arbiter decision)

## Source of truth

The `terms.md` file attached to the reference post is the canonical acceptance specification. Delivery checks, dispute resolution, and refund eligibility are all evaluated against the terms.

## Next steps

- [Contract Guides](/docs/contract-guides) -- detailed lifecycle, refund rules, and anti-fraud invariants
- [Witness](/docs/concepts/witness) -- ownership tracking during contract custody transfers
- [For Sellers](/docs/for-sellers) -- seller-side contract workflow
- [For Buyers](/docs/for-buyers) -- buyer-side contract workflow