The Contact you add to a Disposition is the person or entity that you're transferring the Item to. This could be a Licensee or a Non-Licensee.
To add a Contact to an Disposition
In the 'Dispose To' search box, enter the Contact name
Click the 'Search' button
Select the Contact from your list of Contacts or click the 'Create a new Contact' button
Review and update the Contact's details if necessary
Click the 'Save & Use This Contact' button
The Contact's details will be listed in the 'Dispose To' panel
If you've made a mistake or selected the wrong contact, you can search for the contact again and update it or you can create a new contact entirely.