What type of document details the terms and conditions associated with a business agreement?

The correct answer is a contract. A contract is a legal document that outlines the specific terms and conditions that both parties agree to when entering into a business agreement. It typically includes essential elements such as the obligations of each party, payment terms, duration of the agreement, and provisions for resolving disputes. Contracts are vital in business as they provide clarity and protect the interests of all parties involved, ensuring that there is a mutual understanding of the expectations and responsibilities.

Policies, while important in guiding organizational behavior and procedures, do not typically detail the specific terms of a business agreement as contracts do. Manuals serve as instructional guides and often provide information on processes or systems rather than detailing agreements between entities. Statements, on the other hand, usually refer to financial transactions or opinions, lacking the legal binding nature of a contract.