The word "rent" is used in our everyday speech in a variety of ways. We speak of renting an automobile, or a team of horses, or even a dress suit or a pocket camera. Usually in such cases, the term "hire" would be more applicable; for it adds to clearness to restrict the use of rent to land, or at most to land and its improvements. Even then we may have two kinds of rent, contract (commercial) and economic. Contract rent is a mere matter of agreement between two parties, and it may or may not be equal in amount to economic rent. If I agree to pay Mr. X $100 a year for the use of his ten acres of land, the $100 is contract rent irrespective of the location or fertility of the ten acres. The principle developed in the discussion of market price applies in the matter of contract rent. The landowner, like the seller of goods, has a minimum rental value in his mind, while the prospective renter has a maximum value; each bases his estimate on what he believes is the economic rent of the piece of land under consideration. As a result contract rent tends, in actual practice, to approximate economic rent.