A type of intangible asset that constitutes the value of rights arising from contractual arrangements to which the holding entity is a party. Contract-based intangible assets include licensing, royalty, and standstill agreements, advertising, construction, management, service, or supply contracts, construction permits, franchise agreements, operating and broadcast rights, contracts to service financial assets, employment contracts, right of use; and lease agreements.

Contracts that are expected to generate gains (whose terms are considered in-the-money, at-the-money), as well as contracts with favorable terms relative to market may also give rise to contract-based intangible assets. If the terms of a contract are unfavorable relative to market, the acquirer/ holder recognizes a liability assumed in a business combination.