# Pre-Approved Contract

{% hint style="info" %}
_**Pre-approved escrow contract**_, also known as an item contract,  is a smart contract for a specific product or service with the description of its escrow terms (delivery and inspection time, EVM network, currency and amount, etc.)&#x20;

It is created by the seller and is displayed as an item on the seller's profile page. It is specifically designed for marketplace sellers to add items (products, services, assets) to their profiles, and sell to multiple buyers from one contract.
{% endhint %}

Unlike another type, [_default escrow contract_](default-escrow-contract), only the seller can create pre-approved contracts. The contracts are displayed as items on the seller's profile page (as in the online market).

Similar to the default escrow contract, item contract terms describe the product/service quality, its delivery and inspection time, accepted network(s), and token(s). However, these contracts will also display an item image and a set price. Buyers are also given the choice of networks and tokens to pay.

Just like the default contract, a pre-approved contract follows the commands given by its participants known as [_contract actions_](https://docs.zen.land/contract-actions). Their completion changes the [_contract state_](../contract-states/what-is-contract-state) and allows a full contract cycle (from creation to execution).

To clarify how pre-approved contracts work below is the sample contract workflow - from item contract creation to its execution (1 purchase of an item).

### How pre-approved contracts work

#### Step 1. The Seller creates an item (product/service/asset) to sell.

The Seller logs in via web3 wallet (MetaMask) and clicks "My Items" from the left panel. Then, clicks "Add item".

Fills out the form adding the item name, description, delivery, and [_buyer protection time_](../fundamentals/zenland-contract/buyer-protection-time) (time for inspection upon receiving the order).&#x20;

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2F6RhWSvg1lb7yZclPQEzS%2FArt%20for%20item%20contract%201.png?alt=media&#x26;token=7acf20b1-0b8c-40a5-9f3b-1df6711e7f54" alt=""><figcaption></figcaption></figure>

Then, sets the price and selects acceptable network(s) and token(s). \
There are two checkboxes at the bottom of the page  - for one-off items and pre-approved items.

_**One-off items**_ can only be sold once (original and not reproducible artwork, a particular website, etc.) _**Items that are pre-approved**_ by the Seller do not require manual approval and allow buyers to deploy contracts immediately.&#x20;

{% hint style="info" %}
In our example of reproducible landscape art, we leave the first box unchecked. Also, since we want multiple people to buy the item without waiting for our (seller's) approval every time, we check the second box.&#x20;
{% endhint %}

The Seller clicks "Add" and waits for moderator approval (usually 2 - 12 hours).

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2FjWzFjmofshG9eE7MCkhC%2FArt%20for%20item%20contract%202.png?alt=media&#x26;token=f82cdac3-9ff1-410d-a2b3-66819c2470ee" alt=""><figcaption></figcaption></figure>

#### _Step 2. The Seller checks the profile to see the new item and its details._

The Seller clicks on the user icon and selects "Profile". Once approved by the moderator, the new item will appear on the Profile page under the "Items" tab. Clicking on the item displays its details.&#x20;

If necessary, items can be edited (_note that all changes undergo moderation_).

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2FNvmTJ2cbNAEmhDNRw3dP%2FTruffle%20Profile%20page%20with%202%20items.png?alt=media&#x26;token=ff093583-b91a-46f3-ba8c-b4a33eefec06" alt=""><figcaption></figcaption></figure>

#### _Step 3. The Buyer goes to the Seller's page and purchases the item._

The Buyer logs in via MetaMask and enters the Seller's address into the address bar (example: [https://beta.zen.land/profile/0x9ca6201387e13620c69b3b09af47ef1665d80fbf](https://beta.zen.land/profile/0x9ca6201387e13620c69b3b09af47ef1665d80fbf)).&#x20;

Then, clicks on the item to see the details. Next, the Buyer selects the network and token and clicks "Buy". The contract with the Seller and the Buyer addresses and terms is created, and the Buyer approves it.

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2F2yxGlohHP9RWWLqxEmo4%2FArt%20for%20item%20contract%203.png?alt=media&#x26;token=7c921cee-c3af-4364-8fe5-6058b577935b" alt=""><figcaption></figcaption></figure>

#### _Step 4. The Buyer sends the contract to the blockchain and locks payment inside._

The Buyer deploys the approved item contract to the chosen blockchain network and transfers the payment inside.

All contract operations are done from the Control page following contract actions, such as "[_Deploy_](../contract-actions/deploy)" and "[_Transfer_](../contract-actions/transfer)". Both actions are blockchain transactions and will require a gas fee to execute the commands.

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2FSEA31OwIO3aMEaK7WG5n%2FArt%20for%20item%20contract%204.png?alt=media&#x26;token=b47df8b9-0b58-4335-99b1-3534896b4b10" alt=""><figcaption></figcaption></figure>

#### _Step 5. The Seller completes the order (delivers the product/service/asset to the Buyer)._

The Seller checks the contract address _<mark style="color:blue;">**0x63443e62d52b42229a06319c5ebdf9ba91aa0dd7**</mark>_ via Etherscan (or another applicable explorer) to verify that the payment is inside the contract.

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2FbS3mxVfmUvt1mfHDX6aP%2FArt%20for%20item%20contract%205a.png?alt=media&#x26;token=3e4259b8-69f0-4214-a179-f6dc28e4c5f7" alt=""><figcaption></figcaption></figure>

Then, sends the file to the Buyer and confirms the order completion by clicking the "[_Complete_](../contract-actions/complete)" button.&#x20;

24- hour inspection time (buyer protection time) starts.

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2F3q9hfAHPlzlBuGNbSgwk%2FArt%20for%20item%20contract%205.png?alt=media&#x26;token=165ae9e3-dd82-484f-a463-4f352c36c0b0" alt=""><figcaption></figcaption></figure>

#### Step 6. The Buyer releases payment to the Seller.

The Buyer checks the order, and releases the payment to the Seller's address by clicking "[_Release_](../contract-actions/release)".

<figure><img src="https://3678513497-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDojHijEjiXMCI6uS8RHU%2Fuploads%2FXDUCZ65GA8EhhI91xYay%2FArt%20for%20item%20contract%206.png?alt=media&#x26;token=e88fd548-6d34-4330-ae09-cc6a2fb71c21" alt=""><figcaption></figcaption></figure>

### Pre-approved contract use cases

Just like a default escrow contract, a pre-approved contract can be used for selling all kinds of products, services, or assets. The given table lists common use cases for pre-approved contracts, a.i. item contracts.

<table><thead><tr><th width="255.33333333333331">Physical/digital products</th><th>Service(s)</th><th>Assets</th></tr></thead><tbody><tr><td>Headphones &#x26; small electronics</td><td>Copywriting (PR)</td><td>Video game collectibles</td></tr><tr><td>All-purpose design prints</td><td>Graphics &#x26; Design</td><td>Vintage electronics</td></tr><tr><td>Gift cards &#x26; Tickets</td><td>Website/App development</td><td>Original artwork</td></tr><tr><td>Domain name/websites</td><td>Video editing &#x26; Voice over</td><td></td></tr><tr><td>Social media/gaming accounts</td><td>Video/audio courses</td><td></td></tr><tr><td>Books/e-books/documents</td><td>Market research &#x26; SEO</td><td></td></tr><tr><td>Photography/music/audios</td><td>Bussiness consultancy</td><td></td></tr></tbody></table>

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