While a job offer letter outlines the basic terms and conditions of the job, an employment contract is a more comprehensive and legally binding agreement that specifies the detailed terms and conditions of employment – including responsibilities, rights and obligations – and any relevant provisions or clauses related to things like termination, non-compete agreements, intellectual property and dispute resolution. Obtaining signatures on employment contracts is a common practice to show mutual consent and agreement between the employer and the employee regarding the terms and conditions of employment.