Fool discussed contract (4)
I believe the answer is:
knit
'contract' is the definition.
(thesaurus)
'fool discussed' is the wordplay.
'fool' becomes 'nit' (I've seen this before).
'discussed' indicates a 'sounds like' (homophone) clue.
'nit' sounds like 'KNIT'.
(Other definitions for knit that I've seen before include "get together" , "Work with wool and needles" , "become closer" , "Draw (brows) together" , "Unite closely" .)