This paper explores current literature on the topic of learning contracts. Learning contracts emerge as a useful teaching and learning aid that foster independent learning among students. Students report freedom in learning and an increased sense of resp onsibility. Limitations of contract learning include the possibility of increased student stress and difficulty using the contract with students who have a traditional expectation of the educational system. From the teachers perspective, the contracts al low students to take more responsibility for learning, however they are a time consuming exercise that could prove unmanageable with large class sizes, particularly if the student/teacher ratio is not sufficient. Using the available literature on the top ic the author describes the introduction of contract learning to clinical placements for general diploma nursing students in the first year of their training. The response from the students is positive and from the teacher's perspective, they are creativ e learning devise that enhance student learning.