Contract is an agreement settled between two and more persons or parties.
Contrast has two major types: Short-term Contract and Long-term Contract.
Short-term Contract are those contract that are settled in a time span of within a year. As a person takes the contract of building a roller coaster and the contract that is settled between the parties is until four months. Such type of settlement is called Short-term Contract.
Those contracts that signed over a time span of over a year. Suppose ABC company signed a contract on 1st, July 2014 for the construction of a building. The contract term provided for completion of contract by Dec. 30th 2017. It will be called Long-term Contract.