Meaning of the word "make a contract with" in English

What does "make a contract with" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

make a contract with

US /meɪk ə ˈkɑːn.trækt wɪð/
UK /meɪk ə ˈkɒn.trækt wɪð/
"make a contract with" picture

Phrase

to enter into a formal and legally binding agreement with another party

Example:
The company decided to make a contract with a new supplier.
You should always make a contract with your clients to avoid disputes.