Feras Alhlou explains the key difference: a proposal is the agreement before you sign it, while a contract is the legally binding document after signature. Both cover deliverables, payment, and governing terms.
A question I get, in a sales context, what is the difference between a proposal and a contract? A contract is a legal agreement that outlines what you're delivering, what the client is paying, and all the terms governing the relationship. In many cases, proposal refers to the agreement before it's signed and contract refers to the agreement after signature.
