Commonly folks have asked me what the technical difference is between a contract and a grant. The difference is not about the dollar value or who the buying entity is nor the kind of work being done. Instead it is about the legal concept of default. In my eyes, the corner stone of whether something should be called a grant or a contract lies in whether one is legally bound to produce results as one is in a contractual relationship or whether you are simply granted funds to do something. Did you get that nuance? Perhaps that is oversimplifying it.

Essentially, a contract is a legally binding document in which the parties make promises to deliver a product or service in exchange for consideration (usually money.) A grant on the other hand is when one party grants funds to another party to do something, in reasonable hopes that the task can be accomplished. If the task is accomplished