Design an ER diagram: a legal entity has many contracts, a contract has many retail outlets.

ER diagram for the described situation includes three entities:

• Legal Entity (LegalEntity)
• Contract (Contract)
• Store (Store)

Relationships:

• Legal Entity — "has many" — Contract (one-to-many relationship)
• Contract — "has many" — Store (one-to-many relationship)

Example description:

LegalEntity (ID, Name, ...)
Contract (ID, LegalEntityID, ContractDetails, ...)
Store (ID, ContractID, Location, ...)

Where:

• LegalEntityID in the Contract table is a foreign key to the legal entity.
• ContractID in the Store table is a foreign key to the contract.

Thus, one legal entity record can be associated with many contracts, and each contract with many stores.