Hi - I am trying to understand license requirements, and was planning to purchase Office 365 E1 licenses; however, I am not sure my use case is acceptable. Can I license users on my domain who are not employees or contractors? I have in domain users. I would like to make O365 E1 services available to them.
You can assign licenses to whoever you want/need. That said, any licensing questions should be addressed directly to your local Microsoft representatives - nobody here is qualified to quote licensing terms on behalf of Microsoft.