Data contracts outline the terms and conditions under which data is shared or exchanged between organizations or within different departments of the same organization. These agreements typically specify data quality requirements, data privacy and security standards, data usage rights, and compliance with regulations. By clearly defining these aspects, data contracts help ensure that data remains accurate, secure, and used appropriately, minimizing misunderstandings and potential conflicts. They are essential for establishing trust and maintaining data integrity in collaborative data environments or when integrating data from multiple sources.