for simplicity, Instance is the name of the Database. Schema is the owner of your objects(tables, indexes, views, synonyms,etc).
In you example, you have a Database Instance named CONTRACT.
In your Contract database, you have 2 Schemas named LEGAL & RI.
Now, this is where I also get confused. Because, you said "LEGAL has got 2 instances, ie QADB15 & QACNTR2". Meaning they are inside the LEGAL schema...
If they are inside the LEGAL schema, QADB15 & QACNTR2 are OBJECTS and not instances inside the LEGAL schema. Most probably, they are tables...
Hope that clear things abit