Introduction: Therapeutic contract is a mutual agreement in counselling or psychotherapy, among the therapist and the client.It indicates the rights and responsibilities of both to ensure target treatment goal.Contracting also ensures that “the counseling process will be performed in a good and safe manner and, as a written document, provides the necessary space for legal intervention if the responsibilities outlined are not met”. Specific contract is mandatory to assess the output of individual session to ensuring both ethical concerns and the therapeutic process. A practitioner evaluates the situation and context of a contract for better management of the client. The practitioner and client are related to each other as equals. Hence, they share responsibility for the change the client wants to make.There are already considerable discussions and debate on the utility of contracts among psychotherapists and counsellors alike.Some see contracts as restricting the healing process and often hindering the work conducted in sessions. The agreement can restrict both the capacity to perform specific treatment procedures and the scope of the role of the therapist.The innovation and ability for clients to extend their limits of freedom could be undermined by defined protocols or contracts.On the contrary, those arrangements are used by certain therapists to revisit specific individual therapy subjects and create the appropriate criteria for this professional structure.Contracts create an equilibrium of power and balance for sessions very often. No matter the view or desire of contracts, it remains important to develop written and/or verbal agreement for a particular psychotherapy subject/patient.This part is one of the official aspects of the psychotherapy agreement and original partnership, whether in private practice, community clinics, hospitals, schools, or in the legal system.This paper aims to discuss the necessity and ethical demand of therapeutic contract in counselling and psychotherapy practice.