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Based on a directive from the National Advisory Board of Canada, this paper provides a set of definitions and guidelines which Canadian libraries may choose to use in negotiating their contracts with database suppliers, vendors, and other information and bibliographic services. The report is intended to: (1) provide a basis for understanding and discussing legal aspects of the network; (2) assist network participants in understanding and dealing with the principal forms of contract that will exist in the emerging network; and (3) foster greater standardization of the forms and terminology employed in the principal types of network contracts. Following an overview in section 1, section 2 provides a contractual model illustrating library and information network contractual relationships. Section 3 presents guidelines relating to the contents of contracts, and section 4 contains conclusions and recommendations. A quick reference checklist of contract subject headings in recommended sequence, selected terms and definitions, two illustrative model contracts, a list of references, and a selective bibliography are appended. Text is presented in both English and French. (THC)