The focus of education today is on producing graduates who can function competently in the real life work situation, thus challenging teachers to produce students who are self-directed and self-motivated lifelong learners. The clinical contract is an effective learning strategy in aiding students to become more self-directed and confident. In using a contract, the teacher becomes a facilitator focusing on what the student needs to learn rather than on what is to be taught. The teacher identifies basic competencies in knowledge and skills and then works with the student to identify learning strategies and criteria for evaluation; the end result is a binding contract for both parties. Students actively share the responsibility for planning and carrying out a learning experience, and perceive their success or lack of it to be determined by their ability to accomplish objectives. The contract is composed of three parts--the competency, the learning strategies, and the evaluation criteria--and is developed within a few class days. The student negotiates with the teacher for an A, B, or C grade with C being the minimum criteria for a particular competency. During mid-semester the student may renegotiate for a grade or develop alternate learning strategies. At the end of the semester the student presents evidence of attainment to the faculty facilitator. (DJR)