Service contracts
Service contracts are agreements between you and your customers for a type of customer support.

Service contracts can represent different kinds of customer support, such as warranties, subscriptions, or service level agreements (SLAs).

To set up service contracts, from Setup, click Customize –> Entitlement Management –> Service Contracts.

Contract
The Contract object represents a business agreement.

A contract is a written agreement between parties. Many companies use contracts to define the terms for doing business with other companies