If you are new comer to business globe, you are required to have comprehensive understanding of business contract. It is very important document among businesses. Business contract is an agreement in which two or more entities are bound to do or not to do a particular thing. This agreement can be written or oral agreement. This contract contains terms and conditions about certain business’ services and is signed by both parties to accept these terms and conditions.
Business contracts are required as company grows. Business contracts ensure that two companies or parties are bounded for exchange of services that are of value. A contract will be valid when an offer is made and accepted. Business contract must be solid that should make you confident that you have negotiated with best terms and conditions for your business.
First of all, there is a need to understand when you are required to use business contract? Comprehensive answer of this question is when you are going to be hired as an independent contractor. Secondly, when you are going to provide or buy your services or goods. Thirdly, when you find that you are required to sell your business. Fourthly, when you are about to involve a partner with you in your business and are looking for joint ventures. Other cases of using business agreements are such as leases and real estates, franchising, confidentiality agreements, noncompeting agreements etc.
As described above that business contracts can be oral or written, an oral contract is a spoken agreement and is valid same as a written agreement. Oral contracts are legally enforceable but can be difficult to prove in court. All types of contracts cannot be orally however some specific types are there that must be in written form, such as:
- Purchase Contracts
- Sales Contracts
- Business Contracts
- Real Estate Contracts
Written contracts are prepared on paper. Written contracts are easier to approve in court than oral contracts. Party who withdraws the terms and conditions of a business, can be easily caught by the court in presence of written agreement. If you are going to write a business contract, you should consider and emphasize on using written business contract including specific details about agreement. You can consider Business Contract Template to have a look on essentials of this contract.