This chapter explores the terms of letters patent for early colonies, particularly in their economic dimensions. It shows the textual basis for colonial autonomy in these patents as grants from the crown. In particular, patents granted long-term control of colonies to private actors, protected their control over colonial economic operations, and obliged minimal sharing of their economic output with the crown. The chapter presents the theory of contractual imperialism to explain why these contract terms solved an important incentive problem: To induce colonial agents to identify profitable resource endowments, despite great cost and risk, and to exploit them fully.