# Tool Contract Source: https://customlabs.io/glossary/tool-contract/ Updated: 2026-09-13 Agents # Tool Contract A tool contract is the schema a tool exposes to a model. It lists parameter names, types, required fields, and any enums or patterns that constrain them. A loose contract lets a model fill an ambiguous field with a plausible-looking guess. A tight contract, validated server-side, stops a hallucinated argument from reaching execution. It is the one piece of documentation a model reads before every call. [The Agent Tool Interface](https://customlabs.io/tool-design/)[Pattern: Typed tool contract](https://customlabs.io/patterns/typed-tool-contract/) [← Back to the full glossary](https://customlabs.io/glossary/) ## Related terms [Tool Calling Tool calling lets a model request a structured action instead of only generating text.](https://customlabs.io/glossary/tool-calling/)[Model Context Protocol (MCP) MCP is an open standard for connecting LLM applications to tools and data sources.](https://customlabs.io/glossary/model-context-protocol/)[Structured Output Structured output constrains a model's response to a defined schema instead of free-form prose.](https://customlabs.io/glossary/structured-output/)[Idempotency An idempotent operation produces the same result no matter how many times it runs.](https://customlabs.io/glossary/idempotency/) ## More in Agents [Agent (Agentic AI) An agent is an LLM given a loop, memory, and tools it can call.](https://customlabs.io/glossary/agent/)[Context Engineering Context engineering decides what occupies a model's context window at every step, and in what order.](https://customlabs.io/glossary/context-engineering/)[Guardrails Guardrails are the checks that keep an LLM or agent inside acceptable bounds in production.](https://customlabs.io/glossary/guardrails/)[Golden Path A golden path is the single sanctioned way to do a common piece of work.](https://customlabs.io/glossary/golden-path/)