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The Importance Of Signing Business Contracts

Aug 25, 2007
I am sure you are thinking a business contract even with my mother? The answer is yes. A business contract no matter who you are working with will save you in times of trouble and allows both parties to know exactly what is involved and expected of them. There are many reasons you want a contract when doing any kinds of business like, buying a home, working when you own your own business, sales and many more.

If our society did not have contractual agreements we would be a land forced to resort to physical punishment in order to resolve issues. The legal system was formed to help us become more civilized. By writing out a contract and having both parties sign the contract you are protecting both parties involved. Reasonable contract agreements are met and protected as well as mutually understood and agreed upon.

A contract is formed either verbally or written. While oral contracts are less desirable in court they can still be used. For instance if a person selling a car says I will sell you my car for $400 and the buyer agrees, an oral contract has been entered. This oral contract does very little to protect the buyer or the seller and if it is not executed in a timely manner the seller can choose to sell the car to someone who has cash on hand.

Written contracts are much clearer if written well. They are stated clearly so that both parties understand the terms and can agree to it. A contract is a legally binding agreement and can only be broken if the party wishing to break it communicates to the other party. The acceptance of a contract is in effect as soon as the contract is signed, or an acceptance letter is put in the mail. What may appear as an acceptance with an exception of change is not actually acceptance of the offer. It is in fact a counter offer and must wait for the counter offer to be accepted before a contract can be entered.

There are two distinctions in contract types. One type of contract is a bilateral contract. A bilateral contract is a contract that is formed by a promise for a promise. An example would be you promise to paint and the other person promises to pay you. The other type of contract is a unilateral contract. This type of contract is one where the offer can not be accepted by a promise, only by action. No matter what you are doing, having a contract between you and the person your working with will ensure that both of you understand fully what is expected and what is required of each party.
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Obinna Heche. Los Angeles - California

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