Contracts defines how the process of investment has to be done. Investment contracts are required to include the ground principles upon which the parties had negotiated, in addition to the distribution of rights, duties, liabilities, and interests. These criteria covered, in particular, the choice of a venue for conflict settlement and the legislation that applied to the program. The role of contract in investment process is full of complexity of rules regarding the investment as they are shaped by negotiation between parties except in case of standard form of investment agreements which are often used for security investment such as investment in stocks etc. The entities conclude contracts for better realization of collaboration and coordination. The current work analyses the concept and relevancy of investment contracts along with necessary functions of investment contracts and the framework pertaining to investment contracts.