investment contracts are agreements wherein one party invests money with the expectation of receiving a return on investment (roi). when a person invests money as part of the investment contract, he or she expects to receive profits based on the efforts of a third party. in an investment contract, the basics describe the terms of the investment as well as how and when the investor should expect a return on the investment. you must make sure you issue shares in a way that adheres to company guidelines. in the case of tangible asset investments, you’ll have to figure out how to continue business operations in the event the investor asks that those assets be returned. if he or she doesn’t receive a return, the investor can ask that you return the investment.