This paper is a practical guide that explains and illustrates contracts between libraries and vendors for computerized circulation systems. It describes the elements of a typical contract to include the equipment and services that should be specified in the contract and establishes scheduling and acceptance testing needs. Included in a contract may be provisions for training; statements of library and vendor obligations; warranty data; patent, copyright, and license protection; system maintenance; loss and damage insurance; contract modification waivers; defaults and remedies; performance bonds; progress reports; delivery and installation schedules; payment schedules; licensing agreements; and tax obligations. Sample exhibits provide schedules of hardware, supplies, and implementation; escrow agreements; program license agreements; acceptance test plans and procedures; hardware maintenance and installation services contracts; and performance bonds. (RAA)