I know we have a few breeders that frequent these forums, so maybe someone could chime in with some specific answers to your questions RE: the contract. Personally, I would think that would be something the breeder would provide. He's the merchant in this situation, so you'd think he would have done something like this in the past (especially if he's taking deposits on pups).
Esther gives some great advice about what to look for in the parents. Also, make sure the breeder spells out his health guarantee for you - it is very important. We've had several people join these forums with some pretty heart wrenching stories that come about when their new puppy gets sick.
